Which of the Following Is an Example of a "Future

question 7

Multiple Choice

Which of the following is an example of a "future"?

• A)Right to buy 100 shares of CIBC over the next 5 years.
• B)Commitment to buy 100 barrels of oil next month at $125/barrel.
• C)Commitment to buy $100,000 US dollars in 4 months at US$=1.10.
• D)Pay interest at prime +3% in exchange for receiving interest at 5%.

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Definitions:

FPC

Finite Population Correction, a factor applied in sample size calculations to adjust for sampling from a finite population, ensuring more accurate results.

Standard Error

A statistical metric that measures the accuracy with which a sample distribution represents a population, calculated as the standard deviation of the sampling distribution.

Margin of Error

An expression of the amount of random sampling error in a survey's results, indicating a range within which the true population parameter is likely to lie.

Confidence Interval

A collection of values, derived from the analysis of sample data, that is expected to cover the value of an unknown population quality.