The Basis for a Futures Contract Is

question 47

Multiple Choice

The basis for a futures contract is

• A) current spot price/futures price.
• B) futures price X current spot price.
• C) current spot price - futures price.
• D) futures price/current spot price.

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Definitions:

Net Present Value

A financial metric that calculates the present value of all future cash flows of a project minus the initial investment.

Capital Investment

The spending of money by a business on physical assets like property, industrial buildings, or equipment to enhance its operations and profitability.

Domestic Bond

A bond issued within a country and denominated in the currency of that country, typically purchased by residents of the country.

Multinational Technology

Technology products, services, or innovations that are designed, developed, and deployed across multiple countries.