When a futures contract is purchased, ________

A) no money changes hands
B) the only cash flow is at the maturity of the contract
C) the buyer must deposit a certain amount of cash into a margin account
D) the futures commission merchant marks up the price to cover his commission


Answer: C

Business

You might also like to view...

Sarah owes Jane $10,000 under a valid contract but has been unable to pay the debt. Becky agrees to pay $10,000 to Jane in exchange for Jane's contract claim against Sarah. This arrangement is an example of a(n) ________

A) garnishment B) parol evidence C) attachment D) assignment of rights

Business

The last semimonthly payroll of Available Temp Services was $135,600.00 of gross wages for 113 employees. Of the total, none was for payments to employees in excess of the $7,000.00 wage base. What were the total FUTA and SUTA taxes for the payroll? The company's SUTA rate is 5.4% and its FUTA rate is 6.0% less the 5.4% SUTA credit.

A. $8,136.00 B. $15,729.60 C. $7,322.40 D. $9,492.00

Business

A request or invitation to negotiateis an offer

Indicate whether the statement is true or false

Business

Individuals who are arrested must be informed of certain constitutional rights

Indicate whether the statement is true or false

Business