Which of the Following Is True of the Market Price

question 78

Multiple Choice

Which of the following is true of the market price of a futures contract over time?

• A)It is set at time 0.
• B)It is fixed over the life of the contract.
• C)It changes based on the market value of the underlying asset.
• D)It decreases with time to expiration.
• E)It is based on supply and demand.

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Definitions:

Valid

The state of being logically or legally sound; having force, or binding force; effectively supporting a specified point or claim.

Variable

A characteristic or attribute that can vary or be changed, often used in research to measure or test hypotheses.

Indicators

Quantitative or qualitative factors that provide a measure of some aspect of a society's condition or progress, often used in research and policy analysis.

Well-Being

A state of health, happiness, and prosperity.