The Realized Return to a Bank from a Combined Cash

question 101

Multiple Choice

The realized return to a bank from a combined cash and futures market trading operation is composed of which of the following elements?

• A)Returns earned in the cash market
• B)Profit or loss from futures trading
• C)Difference between the opening and closing basis between cash and futures markets
• D)All of the options are correct
• E)Profit or loss from futures trading and the difference between the opening and closing basis between cash and futures markets

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Definitions:

Contributions

Amounts given or payments made towards a common goal, project, or for the benefit of a group.

Compounded Semi-annually

A method where interest is calculated and added to the principal amount twice a year.

Quarterly

Happening quarterly or four times annually.

Trust Fund

A legal arrangement through which assets are held by a third party for the benefit of another party or parties.