Tyler Buys a Futures Contract from Alex That Gives Him

question 146

Multiple Choice

Tyler buys a futures contract from Alex that gives him the right to buy 1,000 barrels of oil at $125 per barrel in 48 months. What happens in 48 months if the actual price per barrel of oil is $100?

• A) Tyler made a profit of $25 per barrel, or $25,000.
• B) Alex must give Tyler $10,000.
• C) Tyler must pay Alex $25,000.
• D) The contract becomes void because the price turned out lower than expected.

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Definitions:

Disjunctive Tasks

Tasks in which group performance is dependent on the performance of the best group member.

Potential Group Performance

Potential group performance refers to the highest level of performance that a group is capable of achieving, assuming optimal conditions and resource utilization.

Best Member

Refers to the most outstanding, efficient, or productive individual within a group or team setting.

Cohesiveness

The degree to which members of a group or team are united in pursuing common goals and how well they stick together.