A Calendar Spread Futures Position Comprises

question 3

Multiple Choice

A calendar spread futures position comprises

• A)A long position in a futures contract of one maturity and a short position in another futures contract of a different maturity.
• B)A contract on the difference between two different-maturity futures prices.
• C)A portfolio of long futures contracts of different maturities.
• D)A portfolio of futures contracts spanning more than one year.

---

Definitions:

Quantity Demanded

The total amount of a good that consumers are willing to purchase at a given price level in a market.

Demand Curve

A graphical representation depicting the relationship between the price of a good and the quantity demanded by consumers, usually showing an inverse correlation.

Income Change

A variation in the amount of earnings received by a household or individual, which could arise from sources such as wages, investments, or benefits.

Price Change

Refers to the variance in the cost of goods or services over time, which can be an increase or a decrease.