When Purchasing a Futures Contract, the Buyer

question 164

Multiple Choice

When purchasing a futures contract, the buyer:

• A) agrees to pay the seller at a later date, based on the asset's future price.
• B) assumes very little risk that the asset's future price will fluctuate.
• C) must pay the seller a set amount, regardless of what the future price turns out to be.
• D) None of these are true.

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Definitions:

Driver Program

A driver program is a piece of code that sets up and runs a test scenario for a software application, often used for testing or demonstrating the functionalities of specific components.

Student Class

In object-oriented programming, a student class is a blueprint for creating student objects, encompassing properties like name and ID, and behaviors like attending classes.

Lexicographically

Pertaining to the alphabetical order of words based on the sequence of their component letters.

String Method

Functions or methods provided by programming languages to perform operations on string objects, such as searching or manipulation.