An Undeliverable Futures Contract Refers to a Futures Contract in Which

question 60

Multiple Choice

An undeliverable futures contract refers to a futures contract in which:

• A)there is no physical settlement
• B)there is no mandatory cash settlement
• C)one of the parties is unable to deliver
• D)money has been lost due to a party having chosen an unfavourable hedging strategy

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Definitions:

Purine

A heterocyclic aromatic organic compound, forming the basis of two of the four nucleotides that constitute DNA and RNA (adenine and guanine).

Pyrimidine

A heterocyclic aromatic organic compound, similar to benzene and pyridine, containing nitrogen atoms at positions 1 and 3 in the ring.

Benzofuran

An organic compound that consists of a fused benzene and furan ring, often serving as a core structure in various pharmaceuticals and organic materials.

Indole

An aromatic heterocyclic organic compound with a bicyclic structure, consisting of a benzene ring fused to pyrrole.