Which of the Following Is Not a Method of Terminating

question 3

Multiple Choice

Which of the following is not a method of terminating a futures contract?

• A) offset
• B) delivery
• C) exchange for physicals
• D) scalping
• E) none of the above

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Definitions:

External Benefit

A positive effect experienced by individuals or groups who are not directly involved in an economic transaction or activity.

Market Price

The existing rate at which an item or service may be traded or acquired in a commercial setting.

Market Output

The total amount of goods or services produced and offered for sale by businesses in a particular market.

External Costs

Costs that are not borne by the producer or consumer of a good or service but by society, such as pollution.