When purchasing a future contract, the buyer of a futures contract:
A. agrees to pay the seller later where the payment is based on the future price of some asset.
B. assumes very little risk of the future price fluctuation of some asset.
C. must pay a set amount to the seller regardless of what the future price turns out to be.
D. none of these are true.
C. must pay a set amount to the seller regardless of what the future price turns out to be.
You might also like to view...
Even when a particular monetary asset is not performing one of the functions of money well, people still use the asset because
A) once an asset is defined as money it is always money. B) people expect money will come back at a later date. C) they have no choice. D) it is still easier than relying on barter.
In general, as the consumption of a good or service increases, the marginal benefit from consuming that good or service
A) increases. B) decreases. C) stays the same. D) at first increases and then decreases. E) at first decreases and then increases.
Between 2001 and 2005, sub-prime (including Atl-A) mortgages ____________ as a share of the total
a. fell from 30 percent to less than 10 percent b. rose from 5 percent to 10 percent c. rose from 10 percent to more than 30 percent d. fell from more than 20 percent to less than 10 percent
Refer to the information provided in Figure 2.3 below to answer the question(s) that follow.
Figure 2.3Refer to Figure 2.3. Assume that in this society the marginal rate of transformation of sailboats for surfboards is constant and equal to -10. A graph of this society's production possibility frontier will be represented by Panel
A. A. B. B. C. C. D. D.