Finance

An investor who is worried about the impact of rising interest rates on the value of a large bond ...

An investor who is worried about the impact of rising interest rates on the value of a large bond ...

[html]An investor who is worried about the impact of rising interest rates on the value of a large bond portfolio can reduce risk by

▸ selling Treasury note or bond futures.

▸ buying Treasury note or bond futures.

▸ buying gold futures.

▸ selling

dcooper78   59   1 Reply

jarste123

The rate of return on a futures contract is based on the size of the initial margin deposit.

The rate of return on a futures contract is based on the size of the initial margin deposit.

The rate of return on a futures contract is based on the size of the initial margin deposit.

▸ true

▸ false

samanthakay   56   1 Reply

ahgoebel

The high rates of returns, either positive or negative, on futures contracts are primarily due to ...

The high rates of returns, either positive or negative, on futures contracts are primarily due to ...

The high rates of returns, either positive or negative, on futures contracts are primarily due to the high initial margin requirement.

▸ true

▸ false

vurt777   65   1 Reply

sillysquirrel

Producers and industrial users of commodities may participate as both hedgers and speculators in the ...

Producers and industrial users of commodities may participate as both hedgers and speculators in the ...

Producers and industrial users of commodities may participate as both hedgers and speculators in the futures markets.

▸ true

▸ false

ken80   72   1 Reply

ecunis1

For individual investors to adequately hedge their personal portfolios, they should always use the ...

For individual investors to adequately hedge their personal portfolios, they should always use the ...

For individual investors to adequately hedge their personal portfolios, they should always use the S&P 500 Stock Index futures contract.

▸ true

▸ false

squeakykln   58   1 Reply

xoxoitaliangurl

A successful hedge results in a guaranteed sales price to the producers of commodities.

A successful hedge results in a guaranteed sales price to the producers of commodities.

A successful hedge results in a guaranteed sales price to the producers of commodities.

▸ true

▸ false

sperry263   77   1 Reply

moon21c

You short sell contract A at 428 and buy contract B at 333. After one month, you close contract A at ...

You short sell contract A at 428 and buy contract B at 333. After one month, you close contract A at ...

You short sell contract A at 428 and buy contract B at 333. After one month, you close contract A at 435 and contract B at 339. What is you net profit in points?

▸ -13

▸ -1

▸ 1

▸ 13

kaykay41   64   1 Reply

vlad8919

Which one of the following statements is correct if a speculator short sells a commodity or ...

Which one of the following statements is correct if a speculator short sells a commodity or ...

[html]Which one of the following statements is correct if a speculator short sells a commodity or financial futures contract?

▸ The speculator expects to profit from a decline in the price of the contract.

▸ The speculator stands to make an unlimit

sunkiss22   54   1 Reply

dong

Which of the following statements concerning futures are correct?I.Investors in financial futures ...

Which of the following statements concerning futures are correct?I.Investors in financial futures ...

[html]Which of the following statements concerning futures are correct?

I.

SeaBass2013   61   1 Reply

clarkh7839

Which of the following are advantages of using options for futures speculation?I.increased ...

Which of the following are advantages of using options for futures speculation?I.increased ...

[html]Which of the following are advantages of using options for futures speculation?

I.

sweetapple718   60   1 Reply

kitty123

What is the return on invested capital to an investor who purchased a futures contract at a price of ...

What is the return on invested capital to an investor who purchased a futures contract at a price of ...

[html]What is the return on invested capital to an investor who purchased a futures contract at a price of 297 and sells the contract for 308? The contract is on 5,000 units, requires a 3% margin deposit and is priced in cents per unit.

▸ 116.5%

▸

hcraik2   69   1 Reply

teamroket

The return on a futures contract is calculated as

The return on a futures contract is calculated as

[html]The return on a futures contract is calculated as

▸ (purchase price - selling price)/purchase price.

▸ (selling price - purchase price)/purchase price.

▸ (purchase price - selling price)/margin deposit.

▸ (selling price - purchase price)/ma

denausor   57   1 Reply

DNA_Helicase

The return on a futures contract

The return on a futures contract

[html]The return on a futures contract

▸ is highly related to the low margin requirement.

▸ is always equal to or greater than zero.

▸ tends to be fairly stable from one trading day to the next.

▸ is solely related to the current price of the und

nevermind11111   52   1 Reply

jojoliciouz

The purchasing manager of a jewelry manufacturer is worried that the rising price of gold will have ...

The purchasing manager of a jewelry manufacturer is worried that the rising price of gold will have ...

[html]The purchasing manager of a jewelry manufacturer is worried that the rising price of gold will have a negative impact on profit margins on items it has promised to merchants in 3 months.  She should

▸ buy gold bullion today and then sell an eq

dietdrpepper   52   1 Reply

marlboroman

The basic reason why investors use spreading strategies when speculating in commodities is to

The basic reason why investors use spreading strategies when speculating in commodities is to

The basic reason why investors use spreading strategies when speculating in commodities is to

▸ increase leverage.

▸ increase profits.

▸ reduce risk.

▸ decrease transaction costs.

hellchicken   56   1 Reply

fnc28304

Some investors combine two or more different futures contracts into one investment position that ...

Some investors combine two or more different futures contracts into one investment position that ...

[html]Some investors combine two or more different futures contracts into one investment position that offers the potential for generating a modest amount of profit while restricting exposure to loss. This practice is called

▸ speculating.

▸ spread

KoolinIt   55   1 Reply

Chintan13

One reason that commodities appeal to investors is because they

One reason that commodities appeal to investors is because they

[html]One reason that commodities appeal to investors is because they

▸ act as hedges against inflation during periods of rapidly rising consumer prices.

▸ offer high returns for low risks.

▸ do not require much specialized knowledge on the part o

briemert2013   47   1 Reply

desai.sumeet1

Lakshmi is confident that the price of gold is going to rise because the rate of inflation is ...

Lakshmi is confident that the price of gold is going to rise because the rate of inflation is ...

[html]Lakshmi is confident that the price of gold is going to rise because the rate of inflation is increasing. To profit from her prediction, Lakshmi should

▸ buy gold bullion today and then sell an equivalent amount of gold futures.

▸ buy a gold

danyyzz   60   1 Reply

amie

If an investor is going to participate in the commodities market by buying a contract, he/she should ...

If an investor is going to participate in the commodities market by buying a contract, he/she should ...

[html]If an investor is going to participate in the commodities market by buying a contract, he/she should do which of the following?

theferpectstudent   51   1 Reply

bizmailova

Hedging in the commodities market is a strategy primarily used by

Hedging in the commodities market is a strategy primarily used by

[html]Hedging in the commodities market is a strategy primarily used by

▸ individual investors with high risk tolerance levels for commodities.

▸ institutional investors on behalf of their conservative investors.

▸ by producers and processors of c

dbomb1   44   1 Reply

Nfernandez1991

George purchased a futures contract at 349. The contract is on 2500 units, requires a 10% margin ...

George purchased a futures contract at 349. The contract is on 2500 units, requires a 10% margin ...

[html]George purchased a futures contract at 349. The contract is on 2500 units, requires a 10% margin deposit and is priced in cents per unit. George sold the contract at 278. What is George's return on invested capital?

▸ -255.4%

▸ -203.4%

▸ -15

rafiki121   67   1 Reply

dmahr

Benjamin bought a contract for future delivery of 5000 bushels of oats at $3.64 per bushel and sold ...

Benjamin bought a contract for future delivery of 5000 bushels of oats at $3.64 per bushel and sold ...

[html]Benjamin bought a contract for future delivery of 5000 bushels of oats at $3.64 per bushel and sold a later contract at $3.92 a bushel. A month later, corn prices were rising and Joseph sold his long contract for $4.01 per bushel and covered hi

hliz3   49   1 Reply

cskeen80

An oat futures contract is for 5,000 bushels and the price can change by as much as 20 cents in ...

An oat futures contract is for 5,000 bushels and the price can change by as much as 20 cents in ...

[html]An oat futures contract is for 5,000 bushels and the price can change by as much as 20 cents in either direction per trading day.  If the margin requirement is $800 per contract, the maximum gain or loss in one day is

▸ plus or minus 25%.

▸ p

cheesyboots   54   1 Reply

duankong-fei

A corn futures contract closed yesterday at a price of $2.40 a bushel. The maximum daily price range ...

A corn futures contract closed yesterday at a price of $2.40 a bushel. The maximum daily price range ...

[html]A corn futures contract closed yesterday at a price of $2.40 a bushel. The maximum daily price range is $0.40 and the daily price limit is $0.20. Therefore, the

▸ highest closing price for today is $2.80 a bushel.

▸ the most the price can flu

B88101   62   1 Reply

eggr0ll

Calculate the return on invested capital on a platinum futures contract for 50 troy ounces when the ...

Calculate the return on invested capital on a platinum futures contract for 50 troy ounces when the ...

Calculate the return on invested capital on a platinum futures contract for 50 troy ounces when the purchase price is $810.40 per ounce and the sale price is $823.54 per ounce. The initial deposit is $2,500. (Show all work.)

melisooflyy   56   1 Reply

moqamoqa

Briefly discuss futures options. What are they, and what advantage do they offer an investor?

Briefly discuss futures options. What are they, and what advantage do they offer an investor?

Briefly discuss futures options. What are they, and what advantage do they offer an investor?

rado202   50   1 Reply

Redhawt75

The open interest at the end of the trading day indicates the volume of contracts traded during the day.

The open interest at the end of the trading day indicates the volume of contracts traded during the day.

The open interest at the end of the trading day indicates the volume of contracts traded during the day.

▸ true

▸ false

pharmdwannabe   50   1 Reply

wackocrazy

The open interest at the end of the trading day indicates the number of contracts that are open and ...

The open interest at the end of the trading day indicates the number of contracts that are open and ...

The open interest at the end of the trading day indicates the number of contracts that are open and have not been settled by delivery or by an offsetting transaction.

▸ true

▸ false

MasterPriapis   38   1 Reply

thevoicexxx

Investors can trade futures on electricity and natural gas.

Investors can trade futures on electricity and natural gas.

Investors can trade futures on electricity and natural gas.

▸ true

▸ false

daogrady   40   1 Reply

nilabmirzada

If oat futures closed yesterday at $2.43 and the limit is 20 cents, the futures price today must ...

If oat futures closed yesterday at $2.43 and the limit is 20 cents, the futures price today must ...

If oat futures closed yesterday at $2.43 and the limit is 20 cents, the futures price today must stay between $2.23 and $2.63 as long as the contract in question is not for delivery in the current month.

▸ true

▸ false

viva902   68   1 Reply

careytran

Each commodity quote clearly identifies the contract's intrinsic value and time value.

Each commodity quote clearly identifies the contract's intrinsic value and time value.

Each commodity quote clearly identifies the contract's intrinsic value and time value.

▸ true

▸ false

ryanolson41   42   1 Reply

whtsi_ep3

Each commodity contract specifies the product, the exchange on which the contract is traded, the ...

Each commodity contract specifies the product, the exchange on which the contract is traded, the ...

Each commodity contract specifies the product, the exchange on which the contract is traded, the size of the contract, the price at which the commodity must be delivered, and the delivery month.

▸ true

▸ false

tweb28   43   1 Reply

sherry94

Which of the following is NOT actively traded in the commodities futures markets?

Which of the following is NOT actively traded in the commodities futures markets?

Which of the following is NOT actively traded in the commodities futures markets?

▸ soybeans

▸ ethanol

▸ weather

▸ poultry

jkim3464   42   1 Reply

jarste123

On November 22, 2019 the following oat futures prices were retrieved from an online source. Quotes ...

On November 22, 2019 the following oat futures prices were retrieved from an online source. Quotes ...

[html]On November 22, 2019 the following oat futures prices were retrieved from an online source.  Quotes are in cents per bushel.

Katie32   46   1 Reply

micapiro

In commodities trading, open interest at the end of a trading day is equal to

In commodities trading, open interest at the end of a trading day is equal to

[html]In commodities trading, open interest at the end of a trading day is equal to

▸ the net change in price from the prior day's close.

▸ the number of speculative positions sold in the last 60-day period.

▸ the number of contracts presently out

MrBio23   34   1 Reply

lull

Every commodity contract specifies all the following EXCEPT

Every commodity contract specifies all the following EXCEPT

Every commodity contract specifies all the following EXCEPT

▸ the unit size of the contract.

▸ the product.

▸ the delivery month.

▸ All of these are specified in a commodity contract.

mmi   40   1 Reply

egidrarc

A wheat futures contract is quoted in cents per bushel with a contract unit of 5,000 bushels. If the ...

A wheat futures contract is quoted in cents per bushel with a contract unit of 5,000 bushels. If the ...

A wheat futures contract is quoted in cents per bushel with a contract unit of 5,000 bushels. If the contract is quoted at a settle price of 685, then the value of one wheat futures contract is

▸ $685.

▸ $3,425.

▸ $34,250.

▸ $68,500.

tudanglong   68   1 Reply

danterich

The seller of a futures contract in euros hopes that the dollar will strengthen against the euro.

The seller of a futures contract in euros hopes that the dollar will strengthen against the euro.

The seller of a futures contract in euros hopes that the dollar will strengthen against the euro.

▸ true

▸ false

ericayi   45   1 Reply

cheesoslimo

The normal initial margin requirement for commodities or financial futures ranges from about 2% to ...

The normal initial margin requirement for commodities or financial futures ranges from about 2% to ...

The normal initial margin requirement for commodities or financial futures ranges from about 2% to 10% of the value of the contract.

▸ true

▸ false

viva902   44   1 Reply

damien03

The maximum loss on a futures contract is the price paid for the contract.

The maximum loss on a futures contract is the price paid for the contract.

The maximum loss on a futures contract is the price paid for the contract.

▸ true

▸ false

nancy2457   34   1 Reply

isaw09