Which of the Following Statements Is an Example of a Futures

question 130

Multiple Choice

Which of the following statements is an example of a futures market transaction?

• A) An investor purchases 100 shares of IBM hoping to sell it in two years for a profit.
• B) A company purchases an option to buy 1000 barrels of oil anytime between now and the end of the year.
• C) A company agrees to purchase 1000 barrels of oil for delivery in six months at a price of $70 per barrel.
• D) An executive has a portion of his current year salary deferred until he retires.

---

Definitions:

Suburbs of Tacoma

Areas surrounding Tacoma, Washington, typically residential, offering amenities and a lifestyle distinct from the urban center.

Summit of the Volcano

The highest point or peak on a volcano, which is often the location of the central vent or crater.

Mudflow Deposits

Sedimentary accumulations resulting from the flow of mud, often triggered by volcanic activity or heavy rainfall, that can cover large areas and solidify over time.

Landslide Blocks

Large pieces of earth, rock, or debris that move downhill rapidly due to gravity, often caused by saturation from rainfall or seismic activity.