Which of the Following Statements Is INCORRECT About the Settlement

question 11

Multiple Choice

Which of the following statements is INCORRECT about the settlement price in the futures markets?

• A) It's always the last trading price of the day.
• B) It's computed for all futures contracts-both active and inactive.
• C) For actively traded contracts with little price fluctuations,the exchange's settlement committee picks a settlement price from this closing range,often the last traded price.
• D) The settlement price is used for the futures position to be marked-to-market.
• E) For inactive contracts,the settlement committee considers the spreads relative to other futures prices and other relevant information to determine a settlement price.

---

Definitions:

Nursing Wage Rate

The average hourly or annual pay that nurses receive, which can vary based on factors like geographic location, experience, and specialty.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price.

Quantity Supplied

The quantity of a product or service that suppliers are ready and can offer for sale at a particular price during a defined timeframe.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price, in a given time period.