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Futures Contracts Have Two Sources of Return Namely the Capital

question 82

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Futures contracts have two sources of return namely the capital gains that can be earned when prices move in a favorable fashion, and dividend income from the underlying asset.

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Definitions:

Habituation

The process by which there is a decrease in response to a stimulus after being repeatedly exposed to it, leading to an adaptation or normalization of response.

Continuous Cycles

A concept in various fields indicating ongoing, repeating phases or processes without a definite endpoint.

Sensorimotor Substage 6

The final phase of Piaget's sensorimotor stage, occurring around 18-24 months of age, where toddlers develop mental representations of objects and are capable of deferred imitation and more sophisticated problem-solving.

Symbols

Objects, characters, figures, or colors used to represent abstract concepts or ideas.

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