The Seller of a Futures Contract

question 78

Multiple Choice

The seller of a futures contract

• A) has the option of canceling the contract the following day if the price is not acceptable to him/her.
• B) is legally bound to make delivery of the specified item on the specified day.
• C) receives the entire contract amount at the time the contract is made.
• D) must make delivery before receiving any monies on the contract.

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Definitions:

One-Sample Z Test

Used to compare a sample mean to a population mean.

One-Sample Z-Test

A statistical test used to determine if the mean of a single sample is significantly different from a known or hypothesized population mean.

Null Hypothesis

A statement that proposes no significant effect or relationship exists between variables.

Average Rate

The measure of some quantity divided by the time taken to accumulate that quantity, indicating a rate of change or growth over a specified period.