Which of the Following Statements Is True

question 42

Multiple Choice

Which of the following statements is true?

• A)In a spot contract the buyer and seller enter into a contract at time 0, the contract is marked to market, the seller agrees on a price at time 0 and the bonds is delivered by the seller to the buyer 'at that time'.
• B)In a spot contract the buyer and seller agree on a price at time 0 and the bonds is delivered by the seller at a future point in time, for example, after three months.
• C)In a spot contract the buyer and on a daily basis, and the buyer pays the spot price quoted at expiry.
• D)None of the listed options are correct.

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Definitions:

Standard Deviation

A determination of the magnitude of variation or dispersion among values in a set.

Sample Mean

The average of the values in a sample, serving as an estimate of the population mean and used to make inferences about the population.

Exam Papers

Documents containing questions or problems used to test a student's knowledge on a particular subject.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, often used to estimate population parameters.