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:

Single Channel

Utilizes only one means or avenue for distribution or communication, focusing all efforts on optimizing and maximizing that singular mode.

Single Phase

In the context of electrical engineering, it refers to the distribution of electric power using a system in which the power is supplied by a single alternating current source.

Multiphase

Pertaining to processes, systems, or tasks that occur or are executed in several distinct stages.

Unlimited Queue

A theoretical concept where the queue or line of customers or items waiting for service can grow indefinitely without any bounds.