If a Long Agrees to Buy a Specified Asset from a Short

question 40

Multiple Choice

If a long agrees to buy a specified asset from a short at a specified future date for a specified price,the result is a(n) :

• A)unenforceable contract.
• B)forward contract.
• C)option contract.
• D)futures contract.

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Definitions:

Greatest Common Monomial Factor

The greatest common monomial factor between two or more monomials is the highest monomial that divides each of the monomials without a remainder.

Polynomial

A polynomial is a mathematical expression involving a sum of powers in one or more variables multiplied by coefficients.

Greatest Common Monomial Factor

The largest monomial that divides each term of a given polynomial without a remainder.

Polynomial

An expression made up of variables and constants, combined with addition, subtraction, and multiplication, and featuring whole number exponents.