An Annuity Will Pay You $1,000 Per Year for 75

question 28

Multiple Choice

An annuity will pay you $1,000 per year for 75 years.What is the PV of this annuity if your cost of capital is 4%?

• A)$25,000
• B)$72,115
• C)$75,000
• D)$23,680
• E)$24,038

Recognize the role and mechanism of margin and maintenance margin in futures trading.

Identify various commodities and financial instruments that are traded as futures contracts.

Distinguish between long and short positions in the context of futures trading and understand their implications.

Recognize the significance of delivery in futures contracts and the rarity of actual physical delivery.