The Return on a Futures Contract

question 22

Multiple Choice

The return on a futures contract

• A) is highly related to the low margin requirement.
• B) tends to be fairly stable from one trading day to the next.
• C) is solely related to the current price of the underlying item.
• D) is always equal to or greater than zero.

Appreciate the role of customer data management in direct marketing strategies.

Understand the objectives and tools of direct marketing strategies.

Identify the types and effectiveness of different direct marketing methods.

Describe the process of lead generation and its significance in direct marketing.

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Definitions:

Operating Leverage

measures a company's fixed costs relative to its total costs, indicating how a change in sales will affect its operating income.

Forecasting Error

Forecasting error refers to the difference between actual outcomes and previously predicted values, directly impacting planning and decision-making.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the degree to which a company can leverage fixed costs.

Capital Intensive

Refers to industries or businesses that require large amounts of money to buy, maintain, or improve their assets such as property, plants, and equipment.