Which of the Following Items Is Specified in a Futures

question 22

Multiple Choice

Which of the following items is specified in a futures contract?
I.the contract size
II.the maximum acceptable price range during the life of the contract
III.the acceptable grade of the commodity on which the contract is held
IV.the market price at expiration
V.the settlement price

• A)I, II, and IV
• B)I, III, and V
• C)I and V
• D)I, IV, and V
• E)I,II,III,IV,and V

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Definitions:

Break-even Point

The production level at which total revenues equal total expenses, and there is neither profit nor loss.

Contribution Margin Ratio

A financial metric that shows the percentage of sales revenue that exceeds variable costs, contributing to covering fixed costs and generating profit.

Profit-volume Ratio

A measure that indicates the relationship between the profit generated by a business and its sales volume, usually expressed as a percentage.

Property Tax Rates

The percentage at which local governments tax the value of real estate properties.