Which of the Following Is True for Futures, but Not

question 39

Multiple Choice

Which of the following is true for futures, but not for forwards?

• A)actual delivery
• B)no transactions costs
• C)self-regulating market
• D)none of the above

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Definitions:

Net Realizable Value

An estimated selling price in the ordinary course of business minus reasonably predictable costs of completion, disposal, and transportation.

Selling Price

The amount of money charged for a product or service, which may include a markup for profit over the cost of production.

Inventory Item

An article or product that is stored and available for sale or use by a business.

Net Income

A company's remaining earnings once total revenue has been reduced by all expenses, taxes, and costs.