Which of the Following Best Characterizes the Profit of a Buyer

question 66

Multiple Choice

Which of the following best characterizes the profit of a buyer of a futures contract?

• A) spot price at settlement minus futures price at purchase
• B) futures price at settlement minus spot price at purchase
• C) futures price at purchase minus spot price at settlement
• D) spot price at purchase minus futures price at settlement

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Definitions:

Condition Of Uncertainty

A situation where there is a lack of certain knowledge or predictability about future events, often discussed in decision-making contexts.

International Expansion

The process by which a company extends its business operations into new markets across national borders.

Intuitive Judgment

The ability to make decisions or draw conclusions in the absence of explicit reasoning or comprehensive analysis, often based on experience and gut feelings.

Condition Of Risk

A situation or an environment where there is a potential for loss or damage, and outcomes are uncertain.