Financial Futures Are

question 13

Multiple Choice

Financial futures are:

• A) a commitment between two parties to trade a financial instrument at a certain rate at a specified time in the future.
• B) A call option on a standardized asset at a certain price at a specified time in the future.
• C) A put option on a standardized asset at a certain price at a specified time in the future.
• D) a commitment between two parties on the price of a standardized financial asset with the final settlement specified time in the future.
• E) b. and c.

---

Definitions:

Quality Costs

The total amount of costs associated with ensuring the quality of a product or service, including prevention, appraisal, and failure costs.

Upper Control Limit

In process control, the maximum value on a chart indicating the threshold of acceptable variation in a process.

Operator Action

The specific actions or interventions performed by a person or control system operating machinery or equipment, often in response to indicators or to manage a process.

Lower Control Limit

A statistic used in process control that represents the lowest acceptable boundary for process variation.