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:

Key Benefits

The primary or most valuable advantages offered by a product, service, or strategy, often used in marketing to highlight unique selling propositions.

Problem-Solving Ability

The capacity to identify solutions for complex issues or challenges through analysis, creativity, or systematic approaches.

Advertising Campaign

A series of coordinated promotional efforts designed to achieve specific marketing objectives.

Longer-Lasting Apparel

Clothing designed for durability and extended use, often focusing on high-quality materials and timeless design to reduce waste and environmental impact.