Which of the Following Is True of the Market Price

question 78

Multiple Choice

Which of the following is true of the market price of a futures contract over time?

• A)It is set at time 0.
• B)It is fixed over the life of the contract.
• C)It changes based on the market value of the underlying asset.
• D)It decreases with time to expiration.
• E)It is based on supply and demand.

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Definitions:

Features

Characteristics or components of a software, system, or device that provide functionality or enhancements.

Components

Individual parts or elements that make up a system or assembly, such as in electronics or computer software.

Ribbon

A graphical control element in software, especially office applications, presenting a set of toolbars or icons organized into tabs.

Title Bar

A horizontal bar at the top of a window in a graphical user interface, displaying the name of the application or document.