Which One of the Following Statements Concerning Financial Futures Is

question 71

Multiple Choice

Which one of the following statements concerning financial futures is correct?

• A) Except for short-term securities, interest rate futures are quoted based on a percentage of the par value of the underlying debt security.
• B) Stock-index futures are priced at an amount equal to the value of the index.
• C) Foreign currency futures are based on 100,000 units of the foreign currency.
• D) An investor who is long on a financial future loses money when the value of the future rises.

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Definitions:

Incidental Beneficiary

A third party who benefits from a contract between two other parties, although the benefit was not the reason the contract was formed and does not have rights to enforce the contract terms.

Courts

The institutions where legal disputes are heard and decided by a judge or a jury, ranging from local to federal levels.

Statute of Frauds

A law requiring certain types of contracts to be written and signed to be legally enforceable.

Purposes

The goals or objectives that something is intended to achieve or accomplish.