Use This Information to Answer the Questions 3-4

question 34

Multiple Choice

Use this information to answer the questions 3-4.
You purchase a futures contract for September delivery September 15^th of 62,500 pounds on March 15^th. The pound futures exchange rate is $1.65 per pound. The bank has a margin requirement of 2 percent.
-When the futures contract matures in September the spot rate is $1.67 per pound.How much will you have to pay when the futures contract matures?

• A) $103,125
• B) $104,375
• C) $105,187.5
• D) $106,462.5

---

Definitions:

Sustainable Incomes

Earnings generated in ways that do not deplete resources or harm the environment, ensuring long-term economic and environmental stability.

Ecology

The branch of biology that studies the interactions among organisms and their environment.

Organisms

Individual living entities that can react to stimuli, reproduce, grow, and maintain homeostasis.

Environment

The surrounding conditions and influences that affect the growth, development, and survival of organisms.