Multiple Choice
Suppose oil futures prices are as given in the above table (price per barrel) .Suppose you buy 100 crude oil futures contracts,each for 1000 barrels of crude oil,at the current futures price of $108 per barrel on day 0.What is your cumulative profit/loss in your margin account by the end of day 5?
A) -$200,000
B) $200,000
C) $100,000
D) -$100,000
E) $0
Correct Answer:

Verified
Correct Answer:
Verified
Q14: Insurance companies diversify their risks by pooling
Q15: Marking to market for a futures contract
Q16: The risk of fire at a car
Q17: Adverse selection is a market friction that
Q18: What is the percentage change in a
Q20: Vertical integration can increase firm value only
Q21: What is business interruption insurance?
Q22: A firm can borrow at fixed AA
Q23: Heinz uses 2000 tons of corn syrup
Q24: Which of the following best describes how