As the Time of Delivery in a Futures Contract Gets

question 70

Multiple Choice

As the time of delivery in a futures contract gets closer

• A)the futures price gets closer to the spot price.
• B)the futures price generally rises further above the spot price.
• C)the futures price generally falls further below the spot price.
• D)the futures and spot prices remain the same as they were when the contract was first created.

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Definitions:

Unusual Item

An unusual item in financial accounting refers to a gain or loss that is unusual in nature and infrequent in occurrence, thus being reported separately in the financial statements.

Retirement Of A Bond

The process of paying off the principal amount of a bond at or before its maturity date, effectively canceling the debt obligation.

Long-Term Investment

Long-term investments are financial assets that a company intends to hold for more than one accounting year, such as stocks, bonds, or real estate.

Discontinued Operation

A component of a business that has been disposed of or is held for sale and represents a separate major line of business or geographical area of operations, segregated in financial reporting.