The Unusual Volatility That Sometimes Occurs at Stock Index Futures

question 27

True/False

The unusual volatility that sometimes occurs at stock index futures expirations is because of the greater uncertainty.

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Definitions:

Variable

An element, feature, or factor that is liable to vary or change.

Machine Hours

A measure of production time, calculated by the total hours machines are in operation over a set period.

Under-Applied Overhead

A situation where the allocated overhead costs are less than the actual overhead incurred.

Over-Applied Overhead

A situation in cost accounting where the allocated overhead for a period exceeds the actual overhead costs incurred.