Question

0 I1. The eontract uye wants the price of the ise IIt. The bsryer can lqaidate the position with an offeetting trction B) I and il only C) I and IV only D) II and ill only 32) In the fatures markets, gains and losses in a contracts value are cakculated every day and added to or subtracted from the trader's account. This procedure is called A) checking the maintenance margin B) checking the maintenance deposit C) settling. D) mark-to-the-market 33) Eric has just purchased a heating oil contract at $2.05 per gallon. The contract size is 21,000 gallons. Initial margin is $6,075; maintenance margin is $4,500. If the price of heating oil is $2.15 when the contract expires, Eric's profit or loss is A) S(2,100) loss B) S2,100 profit C) S(3,975) loss D) S(2,400) loss 34) If the purchaser of a futures contract fails to meet a margin call, A) his/her contract will be sold at the current market price. B) his/her contract will automatically be executed along with i C) their local broker can decide to waive the call D) they will be given a 30-day grace period before payment is required. 35) The November 12, 2009 on-line edition of the Wall Street Journal listed the following information on oat futures. Oats (CB1)-5,000 bu; cents per bu. Last Chg Open High Low Mar 10 268.6 0.2 268.0 268.6 265.6 290.6 0.2 May 10 2906 02 2906 2912 28.4 290.6 291.2 288.4 Based on this information, which one of the following statements is correct? A) Oats trade on the New York Mercantile Exchange. B) The highest price at which the May oats contract traded was $291.20 per contract. C) The cost of a March 2010 contract was $13,430 at the market close. D) The price of the March 2010 oats contract at the close was $100 higher than the previous day's closing price