You Have Agreed to Deliver the Underlying Commodity on a Futures

question 39

Multiple Choice

You have agreed to deliver the underlying commodity on a futures contract in 90 days. Today the underlying commodity price rises and you get a margin call. You must have

• A)a long position in a futures contract.
• B)a short position in a futures contract.
• C)sold a forward contract.
• D)purchased a forward contract.
• E)purchased a call option on a futures contract.

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Definitions:

Outsourcing

The business practice of hiring a party outside a company to perform services or create goods that traditionally were performed in-house by the company's own employees.

Outplacement Services

Professional services that help terminated employees transition to new jobs by providing support such as resume writing and interview preparation.

Downsizing

Reducing the number of employees on an organization's payroll as a cost-cutting measure or to improve efficiency.

Voluntary Turnover

When an employee decides to leave a company on their own accord rather than being fired or laid off.