In the Futures Markets,the Price of a Derivative Contract for Gold

question 31

Multiple Choice

In the futures markets,the price of a derivative contract for gold is based on:

• A) prices of gold mining companies.
• B) price of gold in the spot markets.
• C) price of gold in the forward markets.
• D) price of gold commodity indexes.

---

Definitions:

Time Of Payment

The specific date or period as stipulated in a contract by which payment is due to be made.

Delivery

Delivery is the act of transferring an item from one party to another, in the context of sales or transportation, with the intention of passing control or ownership.

Express Warranty

An explicit promise made by a seller about the condition, functionality, or performance of a product.

Warranty Of Merchantability

An implicit guarantee that a product sold by a merchant meets certain quality and performance standards.