By Taking the Long Position on a Futures Contract of $100,000

question 64

Multiple Choice

By taking the long position on a futures contract of $100,000 at a price of 115 you are agreeing to ________ a ________ face value security for ________.

• A)sell;$100,000;$115,000.
• B)sell;$115,000;$100,000.
• C)buy;$100,000;$115,000.
• D)buy;$115,000;$100,000.

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Definitions:

Standard Cost

A detailed estimate of what a product should cost.

Actual Cost

The actual amount spent on goods, services, or other expenses, as opposed to budgeted or standard costs, including all direct and indirect costs.

Principle of Exceptions

A management principle focusing on identifying and addressing areas that significantly deviate from the norm or expected results, often utilizing reporting and analysis.

Variances

Differences between planned amounts and actual amounts incurred in operations, budgets, or financial projections.