The Typical Sequence of Cash Flows in a Futures Contract

question 82

Multiple Choice

The typical sequence of cash flows in a futures contract is:

• A)Purchase price plus a margin account up front, differences are settled at expiration
• B)Margin account up front, differences are posted daily and settled in cash if margin drops too low
• C)Margin account up front, all differences settled at expiration
• D)All funds are paid at expiration of the contract

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Definitions:

Nutrition

The process by which organisms take in and utilize food substances.

Perceptual Development

The gradual development of the ability to interpret and make sense of sensory information from the environment.

Infant's Role

The presumed responsibilities or functions of an infant within a family or social setting, largely involving learning and development.

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Being in a state of action; not passive, involved in physical or mental activity.