A Trader Purchases 4 Futures Contracts with a Total Value

question 4

Multiple Choice

A trader purchases 4 futures contracts with a total value of $100 when the price of the contracts (based on the SPI 200 share price index) is 3026.When these contracts expire,the index itself is at 2950 points and the price of the SPI 200 contract units is 2975.The trader has:

• A) made a gain of $5100
• B) made a loss of $5100
• C) made a loss of $2550
• D) made a gain of $2550

Knowledge of dividend policies and their effect on preference and ordinary shares.

Understanding financial mechanisms corporations use to manage shares and shareholder equity.

Ability to calculate dividends and understand the impact on shareholders.

Knowing different types of preference shares and their specific attributes.

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Definitions:

Positive Perceptions

The tendency to view situations, actions, or conditions in a favorable light.

Contingency Variable

A variable that modifies the relationship between two other variables under certain conditions or situations.

Fiedler's Contingency Theory

A leadership theory proposing that the effectiveness of a leader is contingent upon the match between the leader's style and the situation's demands.

Situational Favourableness

This term describes the degree to which a particular setting or context supports or enhances the potential for successful outcomes.