Which of the Following Provides the Profit to a Long

question 39

Multiple Choice

Which of the following provides the profit to a long position at contract maturity?

• A) original futures price − Spot price at maturity
• B) spot price at maturity − Original futures price
• C) zero
• D) basis

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Definitions:

Material B

A generic term often used to denote a specific type of material used in the manufacturing or production process.

Budgeted Total Sales

The estimated total revenue that a business plans to generate from goods or services sold within a specific period.

Sales Estimates

Projections or predictions about the amount of revenue that will be generated through sales activities within a certain period.

Budgeted Sales

An estimate of the sales volume and revenue expected to be achieved in a specific period, typically used for planning purposes.