The Futures Price

question 35

Multiple Choice

The futures price

• A)reflects traders' expectations of the spot price on the day of delivery.
• B)is always above the spot price on the day of delivery.
• C)is always below the spot price on the day of delivery.
• D)is always equal to the spot price at every point in time.

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Definitions:

Explicit Memories

Memories that can be consciously recalled, such as facts and events, and are part of the declarative memory system.

Long-Term Memory (LTM)

In the three-box model of memory, the memory system involved in the long-term storage of information.

Short-Term Memory (STM)

In the three-box model of memory, a limited-capacity memory system involved in the retention of information for brief periods; it is also used to hold information retrieved from long-term memory for temporary use.

Short-Term Memory

The capacity for holding a small amount of information in mind in an active, readily available state for a short period of time.