If the Price of a Futures Contract Increases, Then

question 78

Multiple Choice

If the price of a futures contract increases, then

• A)the exchange will collect the amount of the increase from the seller of the contract and transfer it to the account of the buyer of the contract.
• B)the exchange will collect the amount of the increase from the buyer of the contract and transfer it to the account of the seller of the contract.
• C)the exchange will collect the amount of the increase from both the buyer and the seller and place it in escrow until the delivery date.
• D)the additional funds will be required from either the buyer or the seller until the delivery date.

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Definitions:

Cumulative Effect

The total impact resulting from a series of changes or interventions over time, often considered in assessments of long-term outcomes.

Research Designs

Plans or frameworks for the collection, measurement, and analysis of data tailored to exploring particular research questions or hypotheses.

MAXMINCON Principle

A methodological principle designed to maximize applicable information, minimize cost, and control for unwanted variation in research or operational settings.

Overreliance

Excessive dependence on something or someone, often to the point where it becomes detrimental.