Why Are Most Futures Contracts Not Settled Through Delivery of the Product

question 69

Multiple Choice

Why are most futures contracts not settled through delivery of the product?

• A) Most contracts are settled through the margin account.
• B) Most contracts expire with neither party having an obligation to the other party.
• C) Most participants cancel their futures contracts through purchase of an option contract.
• D)It is easier and cheaper to settle in cash or by offset.

Grasp the importance of balance and equilibrium in Freud's theory.

Identify significant events and elements that influenced Freud's life and work.

Recognize Freud's perception of instincts and their classification.

Comprehend the role of internal stimuli according to Freud.

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Definitions:

Discount Rate

The discount rate applied in the calculation to ascertain the current value of forthcoming cash flows through discounted cash flow analysis.

Cash Inflows

The money received by a business from its various activities, such as sales, investments, financing, etc.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in a linear fashion.

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.