In a Futures Contract, the Futures Price Is

question 10

Multiple Choice

In a futures contract, the futures price is

• A)determined by the buyer and the seller when the delivery of the commodity takes place.
• B)determined by the futures exchange.
• C)determined by the buyer and the seller when they initiate the contract.
• D)determined independently by the provider of the underlying asset.

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Definitions:

Quarter Scale

A scale in which 1/4 inch on the drawing represents 1 inch on the actual object.

Text Size Specification

Guidelines or requirements for the size of text on drawings, ensuring readability and clarity.

Reduced Scale

A representation of an object or a drawing where dimensions are proportionally decreased to fit a specific size or space, typically used in drafting and design.

Title Block

A section of a drawing or document that contains vital information such as the name, number, date, and scale of the drawing, typically located in the bottom right corner.