In Reference to the Futures Market, a "Speculator

question 65

Multiple Choice

In reference to the futures market, a "speculator"

• A)attempts to profit from a change in the futures price.
• B)wants to avoid price variation by locking in a purchase price of the underlying asset through a long position in the futures contract or a sales price through a short position in the futures contract.
• C)stands ready to buy or sell contracts in unlimited quantity.
• D)both b and c

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Definitions:

Unadjusted Year End

The fiscal year-end date prior to any adjustments made for accounting purposes.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal, used to ensure the accounting system's mathematical accuracy.

Allowance for Uncollectibles

An estimation of the accounts receivable that a company does not expect to collect, used to adjust financial statements.

Gross Receivables

The aggregate financial obligation customers have to a company, prior to any reductions for potential uncollectible debts.