An "Acre Foot" Is

question 34

Multiple Choice

An "acre foot" is

• A) the depth of irrigation necessary to grow crops in West Texas.
• B) the amount of property an owner must gain rights to before he can drill an oil or natural gas well.
• C) the amount of electricity necessary to light an acre of property.
• D) the amount of water necessary to cover an acre of land a foot deep.
• E) a term for "getting one's foot in the door" before a person can occupy unclaimed farm land.

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Definitions:

Index Futures

Financial contracts to buy or sell a financial index at a predetermined future date and price.

Short Position

An investment strategy where an investor sells a security that he does not own at the time of sale, typically borrowing it, and hopes to buy it back later at a lower price.

Counterparties

The other organization or party involved in a financial transaction or agreement.

Swap

A derivative contract through which two parties exchange financial instruments, typically involving cash flows based on a notional principal amount.