Why Is It Difficult to Compute the Unrealised Return on a Futures

question 25

Multiple Choice

Why is it difficult to compute the unrealised return on a futures contract?

• A) The risk-free rate may change
• B) Future dividends are unknown
• C) Futures trading requires an upfront payment that consists a fixed percentage of the total value of the security
• D) The cash outlay in a futures contract is substantially less than required for purchasing the underlying security

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Definitions:

Primary Reinforcers

Biological necessities that act as rewarding stimuli without prior conditioning, such as food and water.

Secondary Reinforcers

Stimuli that become reinforcing through their association with primary reinforcers, which are inherently rewarding.

Tasty Food

Edible substances that are perceived as having a pleasant flavor profile by the taste receptors.

Discriminative Stimuli

A specific stimulus in the presence of which a particular response is more likely to be reinforced, and in the absence of which a response is not reinforced.