Since Stock Index Futures Prices Are Primarily Driven by Movements

question 45

True/False

Since stock index futures prices are primarily driven by movements in the corresponding stock indexes, participants in stock index futures monitor indicators that may signal changes in the stock indexes.

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Definitions:

Life Estate

A legal right to use and derive benefit from property for the duration of one's life, after which control reverts to another party.

Fee Simple

A type of freehold ownership where the owner has the greatest possible rights over the land forever.

Prescriptive Right

A right acquired through long-term use, such as the right to cross someone else's land, established by consistent and uninterrupted use over a period prescribed by law.

Covenant

A formal, binding agreement or promise, often found in contracts and legal documents.