What Has Happened to Cause a $250 Loss to Be

question 76

Multiple Choice

What has happened to cause a $250 loss to be marked to the margin account of a futures contract buyer?

• A) The commodity decreased in value on that day.
• B) The commodity increased in value on that day.
• C) The commodity decreased in value by $250 over the contract's life.
• D)The commodity increased in value by $250 over the contract's life.

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Definitions:

Conglomerate Merger

A merger between companies that operate in completely different industries, creating a conglomerate of businesses under one corporate group with diversified interests.

Market Share

The percentage of an industry's total sales that is earned by a particular company over a specified time period, indicating the company’s size relative to its competitors.

Horizontal

In economics and finance, relating to the analysis or movement across time or among peers in a linear or even manner.

Vertical

A specific industry or group of companies that operates within the same segment of the economy, often within a supply chain.