The Seller of a Futures Contract

question 81

Multiple Choice

The seller of a futures contract

• A) assumes the long position.
• B) has the obligation to deliver the underlying financial instrument at the specified date.
• C) has the obligation to receive the underlying financial instrument at the specified future date.
• D) may, at his or her option, deliver or receive the underlying financial instrument at the specified date.

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Definitions:

Discrimination Coefficient

A measure used in statistics and econometrics to assess the degree of separation or differentiation between distinct groups or sets of data.

African Americans

An ethnic category in the United States comprising people with either complete or partial lineage from black racial groups in Africa.

Prejudiced

Having preconceived opinions or judgments without just grounds or before sufficient knowledge.

Lorenz Curve

A graphical representation of the distribution of income or wealth within a society, showing the proportion of the total income earned by various segments of the population.