In the Case of a Futures Contract, Buyers Can Settle

question 22

Multiple Choice

In the case of a futures contract, buyers can settle a contract:

• A) only by taking delivery.
• B) only by arranging an offsetting contract.
• C) either by delivery or offset.
• D) by a combination of delivery and offset.

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Definitions:

Quantity

Quantity refers to the amount or number of a material or immaterial item considered as a unit or in plural units.

Quantity Supplied

The total amount of a commodity that producers are willing and able to sell at a given price during a specific time period.

Quantity Demanded

The sum of a product or service that buyers are ready and capable of buying at a certain price point during a given period.

Inverse

The opposite or reverse relationship, where an increase in one variable leads to a decrease in another, and vice versa.