On the expiration date of a futures contract, the price of the contract converges to the
A) purchase price of the contract.
B) average price over the life of the contract.
C) price of the underlying asset.
D) average of the purchase price and the price of the underlying asset.
C
You might also like to view...
If a country has an absolute advantage in the production of every good, it cannot benefit from trade with other countries
a. True b. False
In the short-run macro model, what type of unemployment is caused by insufficient spending?
a. Cyclical b. Structural c. Frictional d. Seasonal e. All types of unemployment are caused by insufficient spending
Since 1933, bank failures have occurred
a. frequently b. very rarely c. once every 3 years d. every year e. once every 5 years
Aggregate demand is defined as the total spending
a. of all consumers, business firms, government agencies, and foreigners on final goods and services produced in the United States. b. by all consumers, business firms, government agencies, and foreigners in the United States. c. consumers, businesses, government agencies, and foreigners wish to make in one year. d. of consumers, businesses, and government agencies on final output.