The Profits and Losses on a Futures Contract Accrue to You

question 12

True/False

The profits and losses on a futures contract accrue to you daily, as the contract is "marked to market" daily.

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Definitions:

Consumer Surplus

The contrast between the overall amount consumers are prepared and financially capable to invest in a good or service and the actual amount paid.

Marginal Cost

The incremental expense associated with the production of an extra unit of a good or service.

Single Seller

A market structure where there is only one provider of a product or service.

Collusively Agreed

An arrangement or agreement among competing entities to limit competition, usually regarding pricing or market sharing.