Suppose You Buy an Asset at $70 and Sell a Futures

question 56

Multiple Choice

Suppose you buy an asset at $70 and sell a futures contract at $72.What is your profit if,prior to expiration,you sell the asset at $75 and the futures price is $78?

• A)-$1
• B)$2
• C)$1
• D)-$6
• E)none of the above

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Definitions:

Prenatal Care

Medical and healthcare provided to expectant mothers during pregnancy to ensure the health of both the mother and the fetus.

Births Spacing

The practice or policy of controlling the interval between the birth of children in a family.

Population Growth

The increase in the number of individuals in a population, often measured in terms of birth rates, death rates, immigration, and emigration.

Sterilization

The process of eliminating all forms of life, including microorganisms, from an object or area, typically using chemical agents, heat, or radiation.