As the Time of Delivery in a Futures Contract Gets

question 70

Multiple Choice

As the time of delivery in a futures contract gets closer

• A)the futures price gets closer to the spot price.
• B)the futures price generally rises further above the spot price.
• C)the futures price generally falls further below the spot price.
• D)the futures and spot prices remain the same as they were when the contract was first created.

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Definitions:

General Journal

The primary accounting record where all financial transactions of a business are initially recorded before summarizing.

Cost Effectiveness

An assessment of the financial viability of a project, product, or measure based on the costs incurred versus the benefits achieved.

Flexibility

The capacity to adapt to changing conditions or circumstances in a business or operational context.

Useful Output

The amount of finished product or completed service that is produced and considered of value to the consumer or market.