A Financial Instrument on Which a Futures Contract Is Based

question 44

Multiple Choice

A financial instrument on which a futures contract is based is called which one of the following?

• A)hedged security
• B)short position
• C)long position
• D)speculative asset
• E)underlying asset

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Definitions:

MR

Marginal Revenue, the additional income earned from selling one more unit of a good or service.

Economic Profit

The excess of total revenue over the complete aggregation of both transparent and hidden costs.

Marginal Revenue

The supplementary income a company accrues from the sale of one additional unit of a product or service.

ATC

Average Total Cost, the total cost of production divided by the number of units produced, representing the average cost per unit of output.