The Maximum Amount That the Price of a Futures Contract

question 77

Multiple Choice

The maximum amount that the price of a futures contract can change during the day is referred to as

• A) the swing limit.
• B) the maximum daily range.
• C) the daily margin limit.
• D) the leverage restriction.

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Definitions:

Tax Burden

The measure of taxes that individuals, businesses, or other entities must bear, typically expressed as a percentage of income or revenue.

Buyer Bears

Indicates the scenario where the buyer is responsible for any additional costs or risks associated with a transaction, such as shipping or taxes.

Seller Receives

The net amount a seller is paid after all costs, taxes, and fees have been deducted from the gross amount received from the sale of goods or services.

Tax Levied

A core financial duty or diversely defined levy enacted on a taxpayer by a government branch to facilitate the financing of government and the wide array of public sector spending.