Suppose You Buy a Futures Contract at $150

question 13

Multiple Choice

Suppose you buy a futures contract at $150.If the futures price changes to $147,what is its value an instant before it is marked-to-market?

• A)0
• B)$3
• C)-$3
• D)it is impossible to tell
• E)none of the above

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Definitions:

U.S. Tariffs

Taxes imposed by the United States government on imported goods and services to protect domestic industries or to generate revenue.

Retaliatory Tariffs

Import taxes imposed by a country in response to similar taxes levied by another country.

Tariff

A tariff is a tax on imports or exports between sovereign states, often used by governments to protect domestic industries from foreign competition or to generate revenue.

Salmon

A species of fish commonly found in the Atlantic and Pacific Oceans, known for its pink to orange flesh.