Futures Contracts Are Standardized with Respect to Delivery Date and the Futures

question 64

True/False

Futures contracts are standardized with respect to delivery date and the futures price specified for the settlement date.

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Definitions:

Variable Expenses

Expenses that vary directly with the amount of output or activity level.

Fixed Expenses

Costs that do not change in total with changes in the volume of activity, such as rent, salaries, and insurance premiums.

Variable Expenses

Costs that change in proportion to the level of business activity or production volume.

Fixed Expenses

Fixed expenses are costs that do not change in the short term regardless of the level of production or sales, such as rent, salaries, and insurance premiums.