What Must Happen to Prices Over the Course of a Contract

question 1

Multiple Choice

What must happen to prices over the course of a contract for the seller of a futures contract to maximize benefits of the hedge?

• A) Prices must decrease.
• B) Prices must increase.
• C) Prices must remain constant.
• D) The seller will profit on the hedge regardless of the direction of price movements.

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Definitions:

Myelin

The fatty substance that surrounds and insulates the axons of some neurons, enhancing the speed of electrical signal transmission.

Schwann Cell

A type of glial cell that wraps around the axons of peripheral neurons to form the myelin sheath, which helps in the rapid transmission of nerve impulses.

Oligodendrocyte

A type of glial cell in the central nervous system that produces the myelin sheath, essential for the insulation and efficient transmission of neural impulses.

Astrocyte

A type of glial cell in the brain and spinal cord that provides support and nutrition, maintains the extracellular ionic balance, and participates in the repair and scarring process of the brain and spinal cord following traumatic injuries.