John and Tom Enter into a Futures Contract in Which

question 120

Multiple Choice

John and Tom enter into a futures contract in which John agrees to deliver 500 crates of coffee to Tom one year from now. Tom agrees to pay a price of $200 per crate. A year from now, John and Tom find that the market price of coffee is $210 per crate. How might they make a cash settlement on the contract?

• A) John will offer $5,000 to Tom and deliver the 500 crates of coffee.
• B) Tom will offer $5,000 to John and deliver the 500 crates of coffee.
• C) John will offer $5,000 to Tom and not deliver any crates of coffee.
• D) Tom will offer $5,000 to John and not deliver any crates of coffee.

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Definitions:

Homelessness

Social category that includes anyone who cannot obtain and sustain long-term, adequate, and risk-free shelter, for any reason.

Mental Illness

A wide range of mental health conditions that affect mood, thinking, and behavior, often requiring clinical diagnosis and treatment.

Mental Illness

A condition that affects a person's thinking, feeling, behavior, or mood, often significantly impairing personal functioning.

Homeless

Relates to individuals who lack a fixed, regular, and adequate nighttime residence, including those living in shelters, transitional housing, or places not meant for human habitation.