In a Futures Contract the Futures Price Is

question 7

Multiple Choice

In a futures contract the futures price is

• A)determined by the buyer and the seller when the delivery of the commodity takes place.
• B)determined by the futures exchange.
• C)determined by the buyer and the seller when they initiate the contract.
• D)determined independently by the provider of the underlying asset.
• E)None of the options

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Definitions:

Acids

Substances that release hydrogen ions (H+) when dissolved in water, possessing a sour taste and able to neutralize bases.

Bases

Substances that can accept protons (H+) and have a high pH; in solution, they can easily donate an electron pair.

Glucose

A simple sugar that is an important energy source in living organisms and is a component of many carbohydrates.