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:

Promotional Allowance

Financial incentives offered by manufacturers to retailers or distributors for promoting their products.

Predatory Pricing

The practice of selling goods or services at a lower price than the cost to produce them to eliminate competition and establish market dominance.

Product Life Cycle

The stages a product goes through from development to withdrawal from the market, including introduction, growth, maturity, and decline.

Online Businesses

Companies that operate primarily on the internet, offering goods, services, or information to a global audience.