Both the Seller and the Buyer in a Futures Contract

question 57

True/False

Both the seller and the buyer in a futures contract are required to put up margins.

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Definitions:

Weekly Operating Profits

The profit a company makes from its operations in a week, excluding non-operational revenues and expenses.

Market Price

The current price at which a good or service can be bought or sold in a particular market.

Long Run

A period in economic analysis where all factors of production and costs are variable, allowing full adjustment to changes.

Weekly Operating Profits

Weekly operating profits describe the earnings a business generates from its normal operations over a one-week period, excluding any income from investments or other non-operational sources.