The Prices of Stock Index Futures

question 50

Multiple Choice

The prices of stock index futures

• A)are always the same as the prices of the stocks representing the index.
• B)are always a little above the prices of the stocks representing the index.
• C)are always a little below the prices of the stocks representing the index.
• D)None of these are correct.

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Definitions:

Quick Ratio

A liquidity metric that evaluates a company's ability to pay its current liabilities without needing to sell inventory, calculated as (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities.

Current Liabilities

Obligations or debts that a company is expected to pay off within one year or within its normal operating cycle.

Quick Ratio

A measure of a company’s ability to meet its short-term obligations using its most liquid assets, excluding inventory.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business’ normal operating cycle, whichever is longer.