By Selling Short a Futures Contract of $100,000 at a Price

question 103

Multiple Choice

By selling short a futures contract of $100,000 at a price of 115,you are agreeing to deliver ________ face value securities for ________.

• A) $100,000; $115,000
• B) $115,000; $110,000
• C) $100,000; $100,000
• D) $115,000; $115,000

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Definitions:

Token Money

Money whose face value exceeds its cost of production.

Coins

Pieces of metal issued by the government as money, typically used as lower-value currency.

Barter

An exchange system where goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money.

Commodity Money

A type of money whose value comes from a commodity of which it is made, such as gold or silver.