Joseph Bought a Contract for Future Delivery of 5000 Bushels

question 109

Multiple Choice

Joseph bought a contract for future delivery of 5000 bushels of corn at $2.80 per bushel and sold a later contract at $2.90 a bushel. A month later, corn prices were rising and Joseph sold his long contract for $3.10 per bushel and covered his short by purchasing the same contract for $3.25 per bushel. Ignoring trading costs, Joseph

• A) broke even.
• B) made $500.
• C) lost $750.
• D) made $750.

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Definitions:

Product Life Cycle

The phases a product experiences starting from its creation and launch into the market, followed by its growth, peak, and finally its reduction in popularity and sales.

Promotion

The activities designed to inform, persuade, or remind target audiences about a product, service, or brand.

High-Learning Products

Products that take longer for consumers to see the benefits of or that do not have a good infrastructure in place to support them.

Infrastructure

The basic physical and organizational structures and facilities (e.g., buildings, roads, power supplies) needed for the operation of a society or enterprise.