Forward Contracts _________ Traded on an Organised Exchange,and Futures Contracts

question 20

Multiple Choice

Forward contracts _________ traded on an organised exchange,and futures contracts __________ traded on an organised exchange.

• A)are;are
• B)are;are not
• C)are not;are
• D)are not;are not

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Definitions:

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit, used to determine how sales affect profitability.

Operating Income

Earnings before interest and taxes (EBIT), a measure of a company's profitability from its core business operations.

Fixed Costs

Operating expenses of a business that remain constant regardless of the volume of production or sales.

Unit Contribution Margin

The amount each unit sold contributes towards covering fixed costs and generating profit, calculated as the selling price per unit minus the variable cost per unit.