The Return on a Futures Contract Is Calculated as

question 101

Multiple Choice

The return on a futures contract is calculated as

• A) (purchase price - selling price)/purchase price.
• B) (selling price - purchase price)/purchase price.
• C) (purchase price - selling price)/margin deposit.
• D) (selling price - purchase price)/margin deposit.

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Definitions:

Bylaws

Written rules and regulations that govern the internal affairs and operations of an organization or corporation.

Transfer of Shares

The process by which ownership of a company's stock is moved from one party to another.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument as stated by the issuer.

Treasury Shares

Shares that were issued and subsequently reacquired by the issuing corporation, not considered when calculating earnings per share or dividends.