Which of the Following Is Not a Precondition for Causation

question 26

Multiple Choice

Which of the following is not a precondition for causation?

• A)the effect variable
• B)correlation
• C)appropriate time order of occurrence
• D)elimination of other possible causal factors
• E)All of these are preconditions for causation.

Understand the role and characteristics of margin requirements in futures trading.

Recognize the importance and implications of the convergence property in futures pricing.

Explain the difference between forward and futures contracts and their respective trading venues.

Identify strategies for managing risk using futures contracts for both hedgers and speculators.

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Definitions:

Optimal Spread

The most favorable allocation or distribution of assets, investments, or resources to minimize risk and maximize returns.

Market Maker

A firm or individual that quotes both a buy and a sell price in a financial market or commodity, hoping to make a profit on the bid-offer spread.

Transactions

The act of conducting business or exchange between parties, often involving the transfer of goods, services, or funds.

Total Profit

The total income of a business after all expenses and costs have been subtracted from its total revenues.