Which of the following statements regarding futures contracts is FALSE?
A) Both the buyer and the seller can get out of the contract at any time by selling it to a third party at the current market price.
B) Futures prices are not prices that are paid today. Rather, they are prices agreed to today, to be paid in the future.
C) Futures contracts are traded anonymously on an exchange at a publicly observed market price and are generally very illiquid.
D) Investors are required to post collateral, called margin, when buying or selling commodities using futures contracts.
Answer: C
You might also like to view...
The detail of individual revenue and expense accounts is reported on the balance sheet.
Answer the following statement true (T) or false (F)
Which of the following questions is most important for product designers to consider while developing a product?
A) Which specific features of the product do customers like most? B) How does the product appear to buyers? C) What are the product's technical specifications? D) How would customers use and benefit from the product? E) How can the product be packaged to stimulate instant purchase?
Mineral Products Corporation, which owns no land, has a right to mine the copper from Natural Resource Company's land. Mineral's right is
A. a leasehold estate. B. a license. C. an easement. D. a profit.
Casey has $1,000 to invest and would like to buy a $3,000 jet-ski in four years. If interest is compounded annually, what interest rate will she have to receive to reach her goal?
A) 300% B) 16% C) 32% D) 3% E) 7%