The Return on a Futures Contract

question 84

Multiple Choice

The return on a futures contract

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

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Definitions:

Oxidation

A chemical process involving the loss of electrons or an increase in oxidation state by a molecule, atom, or ion.

Chromium

A chemical element with symbol Cr and atomic number 24, known for its high corrosion resistance and hardness.

Organic Product

Compounds primarily composed of carbon atoms, resulting from the synthesis in organic chemistry.

Major Structure

Refers to the principal arrangement or configuration of atoms within a molecule, often determining its chemical behavior.