Marking to Market for a Futures Contract Will Ensure That

question 15

True/False

Marking to market for a futures contract will ensure that the sum of the daily changes to the margin account will equal the difference between the original contract price and the price at the end of the contract.

Grasp the principles of discounted cash flow (DCF) and their use in investment decisions.

Understand the concept of net present value (NPV) and profitability index as methods of investment appraisal.

Learn the methodologies for calculating the discounted payback period.

Understand the concept and calculation of average accounting rate of return (AARR).

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Definitions:

Fixed-Ratio Schedule

A reinforcement strategy in operant conditioning where a response is rewarded only after a specified number of responses.

Reinforcement

In behavioral psychology, a process by which the likelihood of a behavior's occurrence is increased through the addition of a stimulus following that behavior.

Primary Reinforcer

An innately valuable stimulus, such as food or drink, that satisfies a biological need and reinforces behaviors without prior learning.

Aversive Stimulus

An unpleasant or noxious stimulus used to elicit a response or to condition a behavior through negative reinforcement or punishment.