What Is a "Future

question 79

Multiple Choice

What is a "future"?

• A)A contract in which two parties agree to exchange cash flows (e.g.interest cash flows).
• B)A contract in which one party commits upfront to buy or sell commonly traded items at a defined price and maturity date.
• C)A contract in which one party commits upfront to buy or sell something at a defined price at a defined future date.
• D)A contact that gives the right,but not the obligation,to buy a share at a specified price over a specified period of time.

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Definitions:

Income Tax Benefit

A reduction in income tax payments, which can result from deductions, exemptions, or credits, often recognizing benefits from losses or deductions from previous years.

Income Tax Expense

The amount of money a company or individual owes to the government based on earned income, reflecting the tax rate and taxable earnings for a fiscal period.

Income Tax Rate Change

A modification in the percentage that individuals or corporations are required to pay to the government from their income.

Future Liability

A financial obligation or debt that a company is required to pay at a future date.