The Counterparty of Someone Buying a Futures Contract on the Chicago

question 21

Multiple Choice

The counterparty of someone buying a futures contract on the Chicago Board of Trade is

• A) the Chicago Board of Trade.
• B) a hedger.
• C) a speculator.
• D) a trader.

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Definitions:

Market Interest Rates

The prevailing rates at which borrowers and lenders interact in the open market, influencing the cost of loans and the yield on savings.

Bond Prices

represent the market value of bonds, which fluctuates based on interest rates, market conditions, and the credit quality of the issuer.

NASDAQ

A global electronic marketplace for buying and selling securities, as well as the benchmark index for U.S. technology stocks.

Intranet

Computer network that is similar to the Internet but limits access to authorized users.