When the Seller of a Futures Contract Is Granted a Choice

question 80

Multiple Choice

When the seller of a futures contract is granted a choice among various assets to deliver, the seller is said to have which one of the following options?

• A)right-to-choose option
• B)spot or futures option
• C)cheapest-to-deliver option
• D)mark-to-market option
• E)flexible delivery option

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Definitions:

Net Income

The profit or loss of a company after all revenues, expenses, taxes, and costs have been subtracted from total revenue.

Income Tax Expense

The total amount of income tax that a company is obligated to pay to federal, state, and local tax authorities.

Earnings Per Share

A financial metric calculated by dividing the net earnings available to common shareholders by the average outstanding shares.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the ownership stake of shareholders.