A Futures Contract Covers 5000 Pounds with a Minimum Price

question 17

Multiple Choice

A futures contract covers 5000 pounds with a minimum price change of $0.01 is sold for $31.60 per pound.If the initial margin is $2,525 and the maintenance margin is $1,000,at what price would there be a margin call?

• A)31.91
• B)32.11
• C)31.29
• D)31.09
• E)31.80

Apply the Coase theorem to real-world externality problems and private solutions.

Understand the principles of absolute and comparative advantage in trade.

Recognize the importance and implications of the small-economy assumption in trade analysis.

Comprehend the concept of world price and its significance in international trade.

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Definitions:

REM Sleep

A stage of sleep characterized by rapid eye movements and brain activity similar to that of waking, often associated with vivid dreaming.

Brain Activity

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A chronic sleep disorder characterized by overwhelming daytime drowsiness and sudden attacks of sleep.

Sleepiness

A state of feeling drowsy or tired, often leading to a need for sleep.