Which of the following statements is an example of a futures market transaction?
A) An executive has a portion of his current year salary deferred until he retires.
B) An investor purchases 100 shares of IBM hoping to sell it in two years for a profit.
C) A company purchases an option to buy 1000 barrels of oil anytime between now and the end
of the year.
D) A company agrees to purchase 1000 barrels of oil for delivery in six months at a price of $70
per barrel.
D
You might also like to view...
The EPA will allow individual states' air pollution level to rise as long as it still meets the EPA's existing national standards.
Answer the following statement true (T) or false (F)
Which of the following is true of Japanese creative advertising strategies according to Tamotsu Kishii?
A) They use humor to create a bond of mutual feelings. B) They use long, explanatory narrations in television commercials. C) They place priority on product quality rather than company trust. D) They prefer direct rather than indirect forms of expression.
Which of the following accounts could decrease as a result of adjusting entries?
A) Prepaid Insurance. B) Accumulated Depreciation-Buildings. C) Rent Expense. D) Service Revenue.
Preparation of a value chart is the first step in activity analysis
Indicate whether the statement is true or false