Share-Index Futures Contracts Are

question 1

Multiple Choice

Share-index futures contracts are:

• A)futures that derive their value from averaging the prices of all underlying shares included in the share index.
• B)futures that derive their value from averaging the prices of a basket of underlying shares included in the share index.
• C)currently only traded in the US.
• D)the least actively traded contracts in future markets.

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Definitions:

ATC

Stands for Average Total Cost, which is the sum of all production costs divided by the quantity of output produced, encompassing both variable and fixed costs.

MC

Marginal Cost represents the change in total cost that arises when the produced quantity of a good is incremented by one unit.

Perfect Competitor

A market situation where numerous buyers and sellers exist, products are identical, and no individual buyer or seller can influence the market price.

Concentration Ratio

An indicator of the percentage of an industry's market controlled by its biggest companies.