The Terms of Futures Contracts Such as the Quality and Quantity

question 48

Multiple Choice

The terms of futures contracts such as the quality and quantity of the commodity and the delivery date are

• A)specified by the buyers and sellers.
• B)specified only by the buyers.
• C)specified by the futures exchanges.
• D)specified by brokers and dealers.
• E)None of the options

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Definitions:

Subjective Approach

An approach to making decisions or assessments that relies on individual preferences, emotions, or thoughts, instead of objective data or proof.

WACC

Weighted Average Cost of Capital; a calculation of a firm's cost of capital in which each category of capital is proportionately weighted, representing the average cost of funding from all sources.

Pure Play

A company that focuses on a specific industry or product segment without diversification into other areas.

Capital Structure

The combination of borrowing and ownership funds that a business employs to finance its activities and expansion.