The Most Popular Financial Futures in Terms of Average Daily

question 41

Multiple Choice

The most popular financial futures in terms of average daily volume is the

• A) OEX contracts.
• B) S&P 500 contracts.
• C) LIBOR contracts.
• D) T-bill contracts.
• E) T-bond contracts.

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Definitions:

Financial Leverage

The action of using debt to magnify the expected return on an investment.

Operating Income

Income from a company's main business activities, excluding deductions for interest and taxes, showing the profitability from core operations.

ROE

Return On Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company uses investments to generate earnings growth.

EPS

Earnings per share, a company's net profit divided by the number of its outstanding shares, indicating profitability.