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:

Goodwill Method

The goodwill method involves assigning a value to the intangible benefits or assets of a company, like brand reputation, during an acquisition or merger.

Capital Balances

The amount of money that owners have invested in an entity, plus any retained earnings or subtracted losses.

Profits and Losses

Profits and losses refer to the financial gains and losses that a business incurs through its operations, reflecting the difference between revenues and expenses.

Remaining Partners

The partners who continue the business operations of a partnership after one or more partners have exited.