Both the Seller and the Buyer in a Futures Contract

question 57

True/False

Both the seller and the buyer in a futures contract are required to put up margins.

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Definitions:

Fixed Overhead Costs

Expenses that do not change with the level of production, such as rent or salaries of administrative staff.

Effect On Income

The impact of specific actions, events, or decisions on a company's net income or profitability.

Book Value

Book value is the net value of a company's assets as reported on the balance sheet, calculated by subtracting liabilities from the total assets.

Salvage Value

The estimated residual value of an asset at the end of its useful life, used in calculating depreciation.