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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 ________.


Definitions:

Utility Maximizing

A principle in economics where individuals or firms aim to achieve the highest level of satisfaction or profit from their consumption or production decisions, subject to their resources and constraints.

Marginal Utility

The additional satisfaction or utility gained by consuming an additional unit of a good or service.

Indifference Curve

A graphical representation in microeconomic theory of all combinations of goods that provide a consumer with the same level of satisfaction, indicating their preferences.

Indifference Curve

A graphical representation showing different combinations of two goods that give a consumer equal satisfaction and utility.

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