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:

External Reinforcements

Rewards or punishments from the external environment that influence and shape behavior.

Social-cognitive Theory

A theory of learning that emphasizes the importance of observing, modeling, and imitating the behaviors, attitudes, and emotional reactions of others.

Internal Forces

Psychological or emotional factors that influence an individual's behavior and decision-making process from within.

External Forces

Factors or influences originating outside an individual that can impact their behavior, decisions, or psychological state.