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:

Connecting Term

A term used in logic and philosophy that links different parts of a proposition or argument, enhancing coherence and understanding.

Presidents

Elected or appointed heads of state or organizations, responsible for the leadership and decision-making within their jurisdiction or institution.

Inductive Generalization

A type of reasoning that draws general conclusions from specific instances or observations.

Federal Holidays

Federal holidays are public holidays officially recognized by the federal government of a country, during which non-essential federal government offices are closed, and employees are paid for the holiday.