The Net Gain or Loss on a Futures Contract for a Stock

question 16

Multiple Choice

The net gain or loss on a futures contract for a stock index that is not closed out is based on the difference between the futures price when the initial position was created and the futures price at

• A)the settlement date.
• B)the date at which the futures price reaches its maximum.
• C)the date at which the futures price reaches its minimum.
• D)the date three months beyond the date when the initial position was taken.

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Definitions:

Common Method

A widely accepted or utilized technique or approach within a specific field or discipline for achieving certain objectives or results.

Jumping

The action of propelling oneself into the air through the forceful extension of the legs, often used in sports, exercise, or as a means of bypassing obstacles.

Firearms

Portable weapons that launch one or more projectiles driven by rapidly expanding high-pressure gas produced chemically by propellant combustion.

Suicide Rate

A statistical measure representing the number of suicide deaths in a specified population or area over a given timeframe.