If You Hold the Futures Contract Until September 15^th and the Spot

question 27

Multiple Choice

If you hold the futures contract until September 15^th and the spot rate for pounds on September 15^th is $1.67 per pound,you will:

• A) not exercise the futures contract.
• B) lose on your position by $1,250.
• C) gain on your position by $1,250.
• D) break even by the amount of the margin.

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Definitions:

Nutrient Deficiency

The lack or inadequate supply of essential nutrients in the body required for various physiological functions.

Anemia

A condition marked by a deficiency of red blood cells or hemoglobin in the blood, resulting in a lack of oxygen delivery to the body's tissues.

Nutrient

Substances obtained from food that are vital for growth, metabolism, and overall body function.

Polysaccharide

A carbohydrate molecule composed of long chains of monosaccharide units bound together by glycosidic linkages.