Futures Contracts Are Said to Exhibit the Property of Convergence

question 54

Multiple Choice

Futures contracts are said to exhibit the property of convergence because ________.

• A) the profits from long positions and short positions must ultimately be equal
• B) the profits from long positions and short positions must ultimately net to zero
• C) price discrepancies would open arbitrage opportunities for investors who spot them
• D) the futures price and spot price of any asset must ultimately net to zero

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Definitions:

Hallucination Reinterpretation

A cognitive therapy technique that helps individuals understand and reinterpret their hallucinatory experiences to reduce distress or disability.

Attention

The mental process of focusing consciousness or awareness onto a specific object, event, or activity, enabling effective processing of information.

Memory

The cognitive process that involves encoding, storing, and retrieving information.

Family Therapy

A form of psychotherapy that aims to address psychological and emotional issues by working with family members as a whole unit.