The Purchaser of a Futures Contract

question 44

Multiple Choice

The purchaser of a futures contract

• A) is required to obtain a margin loan equal in amount to the cost of the contract minus the cash down payment.
• B) is generally required to make a cash deposit of 10 to 20% of the contract price at the time the contract is entered.
• C) does not have to worry about margin calls since margin loans are not required.
• D) is affected by the daily procedure known as mark-to-the-market.

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Definitions:

Authoritative Parenting

A parenting style characterized by high expectations of maturity, clear guidelines and rules, emotional warmth, and an approach that values both autonomy and disciplined conformity.

Attachment

refers to the emotional bond that forms between individuals, critically shaping interpersonal relationships and emotional development.

Avoidant Attachment

An attachment style characterized by a desire to remain independent and self-sufficient, often avoiding close emotional ties.

Intermittent Punishment

A disciplinary strategy where punishments are not consistently applied after each instance of undesirable behavior, which can lead to variable effects on behavior modification.