What Is a "Future

question 79

Multiple Choice

What is a "future"?

• A)A contract in which two parties agree to exchange cash flows (e.g.interest cash flows).
• B)A contract in which one party commits upfront to buy or sell commonly traded items at a defined price and maturity date.
• C)A contract in which one party commits upfront to buy or sell something at a defined price at a defined future date.
• D)A contact that gives the right,but not the obligation,to buy a share at a specified price over a specified period of time.

---

Definitions:

Variable Expense

Costs or expenses that change in proportion to business activity.

Electric Bill

A monthly statement charging an individual or household for the consumption of electricity provided by a utility company.

Cappuccinos

A coffee drink made with equal parts espresso, steamed milk, and milk foam.

Textbooks

Books that are used as standard works for the study of a particular subject.