Which of the Following Best Describes the Risks Associated with Futures

question 57

Multiple Choice

Which of the following best describes the risks associated with futures contracts?

• A) The possibility of making an unexpected profit on a futures contract
• B) The probability of making a loss, or a fall in the value of a futures contract
• C) The variability of changing prices and costs associated with buying and selling futures contracts
• D) The possibility of loss associated with the default by the holder of the opposite position in the contract

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Definitions:

Depression

A mental health disorder characterized by persistently low mood, loss of interest in activities, and a variety of emotional and physical problems.

Abnormal Psychology

The branch of psychology that studies unusual patterns of behavior, emotion, and thought, which may or may not be understood as precipitating a mental disorder.

Theoretical Understanding

A comprehensive insight or knowledge about a specific theory, allowing for the prediction and explanation of phenomena in the related field.

Mental Illness

A broad range of mental health conditions that affect mood, thinking, and behavior, significantly impacting day-to-day living.