With a Futures Contract

question 34

Multiple Choice

With a futures contract:

• A) payment is made when the contract is created.
• B) no payment is made until the settlement date.
• C) the short position agrees to purchase the underlying asset.
• D) the risk is eliminated for both parties.

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Definitions:

Function

The intended purpose or role of an object, system, or process, often related to what it does or is used for.

Amazon

An American multinational technology company primarily known for its e-commerce operations, cloud computing, digital streaming, and artificial intelligence.

Supply Chain

The entire system of producing and delivering a product or service, from the initial sourcing of materials to the final delivery to consumers.

Logistics Management

Logistics management is the part of supply chain management that plans, implements, and controls the efficient, effective forward, and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption to meet customers' requirements.