Which of the Following Statements Is True

question 2

Multiple Choice

Which of the following statements is true?

• A) In a futures contract the buyer and seller agree on a price at time 0 and the bonds are delivered by the seller to the buyer 'at that time'.
• B) In a futures contract the buyer and seller agree on a price at time 0 and the bonds are delivered by the seller at a future point in time, e.g. after three months.
• C) In a futures contract the buyer and seller enter into a contract at time 0, the contract is marked-to-market on a daily basis, and the buyer pays the futures price quoted at expiry.
• D) None of the listed options are correct.

---

Definitions:

Gross Profits

The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

Payoff Table

A tabular representation of the possible payoffs or outcomes resulting from different decisions or strategies under various states of nature.

States of Nature

Different potential scenarios or outcomes that can occur in a decision-making problem, independent of the decision maker's choices.

Null Hypothesis

A statement or assumption that indicates no statistical significance or effect, typically that there is no difference between groups or variables.