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.

---

Definitions:

Human Rights

The fundamental rights and freedoms that every person is entitled to, regardless of nationality, sex, ethnic origin, color, religion, language, or any other status.

Basic Rights

Fundamental rights that are considered to be inherent and inalienable to every individual, often encompassing freedom, equality, and justice.

Economic Justice

The aim to create opportunities for every individual to have a fair stance in economic activities, distribution of resources, and wealth.

Competence

Refers to the ability, knowledge, and skill that an individual or organization possesses to effectively perform a specific job or task.