At the Time a Futures Contract Is Written

question 90

Multiple Choice

At the time a futures contract is written,

• A) The buyer locks in a guaranteed profit
• B) A cash payment is made by the buyer
• C) The market price of the underlying asset on the date must be less than the agreed upon futures price
• D) The underlying asset is specifically identified
• E) The seller of the futures contract believes the price of the underlying asset will rise above the agreed upon price

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