A Futures Contract ________

question 44

Multiple Choice

A futures contract ________.

• A) is a contract to be signed in the future by the buyer and the seller of a commodity
• B) is an agreement to buy or sell a specified amount of an asset at a predetermined price on the expiration date of the contract
• C) is an agreement to buy or sell a specified amount of an asset at whatever the spot price happens to be on the expiration date of the contract
• D) gives the buyer the right, but not the obligation, to buy an asset some time in the future

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Definitions:

Classical Conditioning

An educational technique in which two stimuli are repeatedly associated; a reaction initially caused by the second stimulus is ultimately triggered by only the first stimulus.

Pavlov

Ivan Pavlov, a Russian physiologist known for his work in classical conditioning, demonstrating how stimuli can trigger conditioned responses in animals.

UCR

Unconditioned Response; an automatic and natural response elicited by a stimulus without any prior learning or conditioning.

UCS

UCS stands for Unconditioned Stimulus, a term in classical conditioning that describes a stimulus that naturally triggers a reflexive response without prior learning.