A SPI Futures Contract Gives the Holder the Right but Not

question 56

True/False

A SPI futures contract gives the holder the right but not the obligation to buy or sell ordinary shares at a known date in the future.

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Definitions:

Increase in Income

An upward movement in an individual's or a nation's earnings, due to factors like higher wages, investment returns, or business profits.

Decrease in Quantity

A reduction in the amount of a good or service produced or consumed.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, typically represented by the area above the supply curve and below the market price.

Equilibrium Price

The market price at which the quantity of a good or service demanded equals the quantity supplied, balancing out buying and selling pressures.