As Time Draws Closer to Contract Expiration, Futures Contract Prices

question 42

Multiple Choice

As time draws closer to contract expiration, futures contract prices can be expected to:

• A) increase as the demand for delivery intensifies.
• B) decrease as speculators resolve the uncertainty of prices.
• C) move similarly to broad-based market indices, such as the S&P 500.
• D)converge upon the spot price.

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Definitions:

Federal Government

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Haitian Revolution

A slave uprising that led to the establishment of Haiti as an independent country in 1804.

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The concept that all human beings inherently possess rights and freedoms, regardless of nationality, race, or creed, emphasizing the universal aspect of human rights.

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