Multiple Choice
Suppose you agree to purchase one ounce of gold for $382 any time over the next month. The current price of gold is $380. The spot price of gold then falls to $377 the next day. If the agreement is represented by a futures contract marking to market on a daily basis as the price changes,what is your cash flow at the end of the next business day?
A) $0
B) $3
C) $5
D) -$3
E) -$5
Correct Answer:
Verified
Correct Answer:
Verified
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