An Investor Establishes a Long Position in a Futures Contract

question 61

Multiple Choice

An investor establishes a long position in a futures contract now (time 0) and holds the position until maturity (Time T) .The sum of all daily settlements will be __________.

• A) F₀ - F_T
• B) F₀ - S₀
• C) F_T - F₀
• D) F_T - S₀

Understand how mixed costs behave in response to changes in activity level.

Differentiate between variable and fixed costs, including their behavior within the relevant range.

Identify cost classifications within a company's cost structure.

Recognize the fixed, variable, mixed, and step-variable costs in manufacturing and merchandising companies.

---

Definitions:

Cocaine

A powerful stimulant drug derived from the leaves of the coca plant, notorious for its addictive properties and high potential for abuse.

MDMA

Also known as ecstasy, a psychoactive drug primarily used for recreational purposes, known for its effects on mood, perception, and energy.

THC

Tetrahydrocannabinol is the principal psychoactive constituent of cannabis that affects the brain to produce the "high" associated with marijuana use.

Neurotransmitter

Chemical messengers that transmit signals across a chemical synapse, from one neuron to another target neuron, muscle cell, or gland cell.