On March 1,you Contract to Take Delivery of 1 Ounce

question 37

Multiple Choice

On March 1,you contract to take delivery of 1 ounce of gold for $495. The agreement is good for any day up to April 1. Throughout March,the price of gold hit a low of $425 and hit a high of $535. The price settled on March 31 at $505,and on April 1^st you settle your futures agreement at that price. Your net cash flow is:

• A) -$30.
• B) -$20.
• C) -$15.
• D) $10.
• E) $20.

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Definitions:

O-Horizon

The uppermost layer of soil, primarily composed of organic matter, including decomposed leaves, twigs, and other plant material.

Arid Climate

A dry climate with very little precipitation, insufficient to sustain much plant life, typically found in desert regions.

Slope Failures

A general term for various types of mass wasting or landslides that occur when a slope becomes unstable and collapses.

Rate of Movement

The speed at which a certain object or substance moves through space or a medium.