Futures Contracts Are Standardized Contracts Between Two Parties to Trade

question 67

Multiple Choice

Futures contracts are standardized contracts between two parties to trade financial assets at a future date and in which the terms including the price of the transaction are determined _____

• A)today.
• B)in the future.
• C)by mutual consent.
• D)only in equilibrium.

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Definitions:

Sales Revenue

The income received by a company from its sales of goods or the provision of services before any expenses are deducted.

Actual Level

The real, observed state or value of a variable or metric at a given point in time, opposed to theoretical or planned levels.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Performance Reports

Documents that compare actual business results to planned or budgeted figures to evaluate performance.