If You Bought a Long Contract on Financial Futures, You

question 12

Multiple Choice

If you bought a long contract on financial futures, you hope that interest rates ________.

• A) rise
• B) fall
• C) are stable
• D) fluctuate

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Definitions:

Net Income

The total earnings of a company after deducting all expenses, including taxes and operating costs, from its total revenue.

Weighted-Average

A calculation that takes into consideration the varying degrees of importance of the numbers in a data set.

Cash Dividends

Cash Dividends are payments made by a corporation to its shareholder members. It is a share of profits and retained earnings that the company pays out to its shareholders.

Net Loss

The amount by which a company's expenses exceed its revenues during a specific period, indicating a financial loss.