If an Investor Who Has Previously Purchased a Futures Contract

question 89

True/False

If an investor who has previously purchased a futures contract wishes to liquidate his or her position,he or she would sell an identical futures contract with the same settlement date.

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Definitions:

Convergent

Pertaining to a tectonic boundary where two or more lithospheric plates move toward each other, commonly resulting in mountain formation, earthquakes, and volcanic activity.

Transform

Relates to a type of plate boundary where two tectonic plates slide past each other horizontally, often causing earthquakes.

Mid-Ocean Ridges

Underwater mountain ranges formed by plate tectonics, where new oceanic crust is created by volcanic activity along divergent plate boundaries.

Asthenosphere

The highly viscous, mechanically weak, and ductilely deforming region of the upper mantle of the Earth.