Question

In s famous bet known as the Siman-Ehrlich wager, Pauil Ehrich bet tat over the oourse of 10 years the pics of s commodias would be Nigher than they price of these gpods would be lowor. The loser had to pay the difference of the price from the stanting point. This wager nesembies conmodtes would be higher that ey wore ost to sian ar decade. Jaan Sren beloved the a conmodity contracs fulures oontract a simple contct

Answer 1

The correct answer is A). a commodity contract.

Explain ...

Commodity agreemnent is resembles that of an commodity futures since the price from the starting point has been the fixed price and the wager made requires the loser to pay the difference on a daily like that of an future contract requiring marking to market the commodity future on daily basis and the date being fixed to 10 years from starting point.The commodity futures require an agreement to buy or sell a set commodity at a fixed date and price which stands valid for this wager.This wager is that of an private agreement and while the futures are carried over on a stock exchange which is the only difference.