At the Time a Futures Contract Is Written

question 90

Multiple Choice

At the time a futures contract is written:

• A)the underlying asset is specifically identified.
• B)the buyer pays a good faith deposit to the seller.
• C)the current market price of the underlying asset becomes the contract price.
• D)the current market price of the underlying asset must be less than the agreed upon futures price.
• E)the buyer is granted the right, but not the obligation, to exercise the contract.

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Definitions:

Prosecuted

refers to the act of bringing a legal action against an individual or entity for a crime or violation of law, typically pursued by the state or government.

U.S. Constitution

The supreme law of the United States of America, consisting of a preamble, seven articles that delineate the national frame of government, and amendments.

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The power granted to an individual, often in a corporate setting, through explicit instructions by another authority figure or document.