When Purchasing a Future Contract, the Buyer of a Futures

question 74

Multiple Choice

When purchasing a future contract, the buyer of a futures contract:

• A) agrees to pay the seller later where the payment is based on the future price of some asset.
• B) assumes very little risk of the future price fluctuation of some asset.
• C) must pay a set amount to the seller regardless of what the future price turns out to be.
• D) none of these are true.

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Definitions:

Risky Sexual Behaviors

Sexual activities that increase the likelihood of negative outcomes such as sexually transmitted diseases or unintended pregnancy.

Pregnancy

The period during which a fetus develops inside a woman's uterus, typically lasting around 40 weeks from the last menstrual period.

Sexually Transmitted Infection

Infections that are passed from one person to another through sexual contact.

Reconciles

The process of restoring friendly relations or making one's beliefs or feelings compatible with another.