Which One of the Following Statements Is Correct

question 17

Multiple Choice

Which one of the following statements is correct?

• A)Futures contracts must be held to maturity.
• B)Futures contracts can be closed out only by contract buyers.
• C)Futures contracts can be closed out, but only during the week prior to maturity.
• D)You cannot avoid accepting delivery once you purchase a futures contract.
• E)Futures contracts can be closed out by entering a reverse trade.

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Definitions:

Poisson Distribution

A probability distribution that measures the probability of a given number of events happening in a fixed interval of time or space.

Unsafe Levels

Conditions or thresholds that exceed the accepted or legal safety limits, posing risks to health or safety.

Radioactivity

The spontaneous emission of radiation from the nucleus of an unstable atom as it changes to a more stable form.

Poisson Distribution

A probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space.