In regards to a futures contract, which of the below statements is FALSE?
A) The buyer of a futures contract will realize a profit if the futures price decreases; the seller of a futures contract will realize a profit if the futures price increases.
B) When an investor takes a position in the market by buying a futures contract (or agreeing to buy at the future date) , the investor is said to be in a long position or to be long futures.
C) The "something" that the parties agree to exchange is called the underlying.
D) None of these
Correct Answer:
Verified
Q1: The exchange uses the settlement price to
Q2: The basic economic function of futures markets
Q3: Most financial futures contracts have settlement dates
Q4: Without financial futures, investors would have only
Q6: Which of the below statements is FALSE?
A)
Q7: _ is an agreement between a buyer
Q8: Which of the below statements is FALSE?
A)
Q9: For many financial assets, it is in
Q10: Parties to a futures contract can _
Q11: One alternative in liquidating a futures contract
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