A speculator will often prefer to buy a futures contract rather than the underlying asset because:
I. Gains in futures contracts can be larger due to leverage.
II. Transaction costs in futures are typically lower than those in spot markets.
III. Futures markets are often more liquid than the markets of the underlying commodities.
A. I and II only
B. II and III only
C. I and III only
D. I, II, and III
D. I, II, and III
You might also like to view...
When you're concluding a business presentation,
A) briefly restate the main points you covered during the presentation. B) bring up any information you forgot to include during the presentation. C) share an email address to respond to questions that the audience may have. D) don't let the audience know you're ready to close the presentation. E) let your audience decide how they feel and what they'll do about your presentation.
What document triggers the beginning of the cost accounting process for a given production run?
The key difference between the binomial and hypergeometric distribution is that, with the hypergeometric distribution the
A. probability of success must be less than 0.5. B. probability of success changes from trial to trial. C. trials are independent of each other. D. random variable is continuous.
If firms expect to receive cash more than one year after the time of recognizing revenue, they measure revenues at the present value of the amount of cash they expect to receive
Indicate whether the statement is true or false