Finance

The loss that can occur with a futures contract. is limited to the initial margin deposit.

The loss that can occur with a futures contract. is limited to the initial margin deposit.

The loss that can occur with a futures contract. is limited to the initial margin deposit.

▸ true

▸ false

Helen Kebede   44   1 Reply

Quins184

Speculators provide liquidity to the futures market.

Speculators provide liquidity to the futures market.

Speculators provide liquidity to the futures market.

▸ true

▸ false

whitedreamerz   42   1 Reply

Chintan13

Speculators in the futures markets have no intention of actually taking possession of the commodity.

Speculators in the futures markets have no intention of actually taking possession of the commodity.

Speculators in the futures markets have no intention of actually taking possession of the commodity.

▸ true

▸ false

ceymorebucks24   38   1 Reply

micp3537

Short and long positions in the futures markets refer to the length of time before the contracts' ...

Short and long positions in the futures markets refer to the length of time before the contracts' ...

Short and long positions in the futures markets refer to the length of time before the contracts' delivery dates.

▸ true

▸ false

saratoga 22   29   1 Reply

TAE29

Hedgers who buy futures contracts are protecting themselves from future price increases.

Hedgers who buy futures contracts are protecting themselves from future price increases.

Hedgers who buy futures contracts are protecting themselves from future price increases.

▸ true

▸ false

javielito2000   31   1 Reply

rbacon2

Hedgers in the futures markets are often either users or producers of the commodity traded.

Hedgers in the futures markets are often either users or producers of the commodity traded.

Hedgers in the futures markets are often either users or producers of the commodity traded.

▸ true

▸ false

eennuson   43   1 Reply

moraa

Failure to meet a margin call will cause an investor's futures contract to be sold.

Failure to meet a margin call will cause an investor's futures contract to be sold.

Failure to meet a margin call will cause an investor's futures contract to be sold.

▸ true

▸ false

MrsSmitty   33   1 Reply

sillysquirrel

An investor's margin in a futures contract is checked each day under a procedure known as mark-to-the-market.

An investor's margin in a futures contract is checked each day under a procedure known as mark-to-the-market.

An investor's margin in a futures contract is checked each day under a procedure known as mark-to-the-market.

▸ true

▸ false

nisha   36   1 Reply

silvermoon197

All trading in the futures market is done on a margin basis.

All trading in the futures market is done on a margin basis.

All trading in the futures market is done on a margin basis.

▸ true

▸ false

bmwprincess   37   1 Reply

crazyali16

Which of the following is(are) correct statements about the buyer of a futures contract?I.The ...

Which of the following is(are) correct statements about the buyer of a futures contract?I.The ...

[html]Which of the following is(are) correct statements about the buyer of a futures contract?

hardy7luver   48   1 Reply

CJWVail2

The purchaser of a futures contract

The purchaser of a futures contract

[html]The purchaser of a futures contract

▸ is required to obtain a margin loan equal in amount to the cost of the contract minus the cash down payment.

▸ is generally required to make a cash deposit of 10 to 20% of the contract price at the time t

mooncalled   37   1 Reply

callisonr

The margin deposit associated with the purchase of a futures contract

The margin deposit associated with the purchase of a futures contract

[html]The margin deposit associated with the purchase of a futures contract

▸ is a partial payment on the contract with the amount of the payment equal to 10% or more of the contract value.

▸ represents the purchasers equity in the contract with th

cassandra_dan   35   1 Reply

karisanti

Seth McDonald grows corn. In May, he decides to sell 3 contracts, about half of his expected crop, ...

Seth McDonald grows corn. In May, he decides to sell 3 contracts, about half of his expected crop, ...

[html]Seth McDonald grows corn.  In May, he decides to sell 3 contracts, about half of his expected crop, for December delivery.  The contract price is $3.65 per bushel and the contract size is 5,000 bushels.  Shortly before the delivery date, corn i

rventurec   42   1 Reply

PWT82

Logan sold a corn futures contract using the initial margin of $2,700. His maintenance margin is ...

Logan sold a corn futures contract using the initial margin of $2,700. His maintenance margin is ...

[html]Logan sold a corn futures contract using the initial margin of $2,700.  His maintenance margin is $2,000.  The price of corn began to rise in early summer, but Logan wants to keep his contract.  When his margin falls below $2,000 (minimum maint

vnaust   41   1 Reply

jvigil33

Larry is a corn farmer. To lock in the value of his crop, Larry is most likely to benefit from

Larry is a corn farmer. To lock in the value of his crop, Larry is most likely to benefit from

[html]Larry is a corn farmer. To lock in the value of his crop, Larry is most likely to benefit from

▸ selling his crop at the market price when it is harvested.

▸ buying a futures contract on corn for delivery at harvest time.

▸ selling a futures

Nursesn   30   1 Reply

nenialinda

In the futures markets, gains and losses in a contract's value are calculated every day and added ...

In the futures markets, gains and losses in a contract's value are calculated every day and added ...

[html]In the futures markets, gains and losses in a contract's value are calculated every day and added to or subtracted from the trader's account. This procedure is called

▸ checking the maintenance margin.

▸ checking the maintenance deposit.

▸ s

prpnum1   20   1 Reply

jgunn88

If the purchaser of a futures contract fails to meet a margin call,

If the purchaser of a futures contract fails to meet a margin call,

[html]If the purchaser of a futures contract fails to meet a margin call,

▸ his/her contract will be sold at the current market price.

▸ his/her contract will automatically be executed along with immediate delivery.

▸ their local broker can decide

urraberry   27   1 Reply

birdnugget

Eric has just purchased a heating oil contract at $2.05 per gallon. The contract size is 21,000 ...

Eric has just purchased a heating oil contract at $2.05 per gallon. The contract size is 21,000 ...

[html]Eric has just purchased a heating oil contract at $2.05 per gallon.  The contract size is 21,000 gallons. Initial margin is $6,075; maintenance margin is $4,500.  If the price of heating oil is $2.15 when the contract expires, Eric's percentage

yosie   52   1 Reply

Marinaanderson0

Eric has just purchased a heating oil contract at $2.05 per gallon. The contract size is 21,000 ...

Eric has just purchased a heating oil contract at $2.05 per gallon. The contract size is 21,000 ...

[html]Eric has just purchased a heating oil contract at $2.05 per gallon.  The contract size is 21,000 gallons. Initial margin is $6,075; maintenance margin is $4,500.  If the price of heating oil is $2.15 when the contract expires, Eric's profit or

johnnyappleseed   16   1 Reply

mhmoud123

BBC Inc. needs to quote a price at which it will sell oatmeal to a large supermarket chain next ...

BBC Inc. needs to quote a price at which it will sell oatmeal to a large supermarket chain next ...

[html]BBC Inc. needs to quote a price at which it will sell oatmeal to a large supermarket chain next year.  It can limit the risk from an increase in the price of oats next year by

▸ taking short positions in oat futures.

▸ taking long positions i

urraberry   31   1 Reply

itashia

The futures market contains two basic types of traders: hedgers and speculators. Define the role ...

The futures market contains two basic types of traders: hedgers and speculators. Define the role ...

The futures market contains two basic types of traders: hedgers and speculators. Define the role played by each of these types of traders.

berry   24   1 Reply

kuteeme

Fred has just sold short 3 contracts of May wheat on the CBT. These are 5,000 bushel contracts. The ...

Fred has just sold short 3 contracts of May wheat on the CBT. These are 5,000 bushel contracts. The ...

[html]Fred has just sold short 3 contracts of May wheat on the CBT. These are 5,000 bushel contracts. The initial deposit is $1,500 per contract with a maintenance margin of $1,200.

citycyborg   29   1 Reply

kniemeier2

All futures contracts are traded on a margin basis. What does "margin" mean, and how does the use ...

All futures contracts are traded on a margin basis. What does "margin" mean, and how does the use ...

All futures contracts are traded on a margin basis. What does "margin" mean, and how does the use of margin affect the inherent risk-return nature of the futures market?

Kss612   29   1 Reply

thevoicexxx

With a futures contract, an investor cannot lose more than the price of the contract itself.

With a futures contract, an investor cannot lose more than the price of the contract itself.

With a futures contract, an investor cannot lose more than the price of the contract itself.

▸ true

▸ false

biokam   24   1 Reply

Deeclaire

The number of commodities traded in futures markets has been decreasing because of tighter ...

The number of commodities traded in futures markets has been decreasing because of tighter ...

The number of commodities traded in futures markets has been decreasing because of tighter regulations and a narrower definition of commodity.

▸ true

▸ false

djchewinggum   22   1 Reply

mouallemj

The definition of commodity is broad enough to include such things as. foreign currencies and the ...

The definition of commodity is broad enough to include such things as. foreign currencies and the ...

The definition of commodity is broad enough to include such things as. foreign currencies and the future value of stock market indexes.

▸ true

▸ false

aeropa84   20   1 Reply

darlena

Futures trading requires large amounts of capital because the buyer of a contract must deposit the ...

Futures trading requires large amounts of capital because the buyer of a contract must deposit the ...

Futures trading requires large amounts of capital because the buyer of a contract must deposit the full settlement price of the contract at the time of purchase.

▸ true

▸ false

vlademirsimon   31   1 Reply

schoolkidchuck

Futures contracts obligate a participant to buy or sell the commodity at the contracted price unless ...

Futures contracts obligate a participant to buy or sell the commodity at the contracted price unless ...

Futures contracts obligate a participant to buy or sell the commodity at the contracted price unless the contract is cancelled or liquidated before the expiration date.

▸ true

▸ false

capriciossa   45   1 Reply

Moh1995abdel

Futures contracts for various commodities have different trading hours depending on the commodity.

Futures contracts for various commodities have different trading hours depending on the commodity.

Futures contracts for various commodities have different trading hours depending on the commodity.

▸ true

▸ false

Krispylynn33   25   1 Reply

Kocojda

Commodity prices react to a unique set of economic, political, and international pressures, as well ...

Commodity prices react to a unique set of economic, political, and international pressures, as well ...

Commodity prices react to a unique set of economic, political, and international pressures, as well as to the weather.

▸ true

▸ false

tunisia81   18   1 Reply

obedbro

Because a futures contract deals with very large trading units, even a modest price change in the ...

Because a futures contract deals with very large trading units, even a modest price change in the ...

Because a futures contract deals with very large trading units, even a modest price change in the price of the underlying commodity can have a large impact on the market value of the contract.

▸ true

▸ false

Ryan37sport   30   1 Reply

mbiij16

All futures contracts trade continuously between 7:30 a.m. and 2:00 p.m., Monday through Friday.

All futures contracts trade continuously between 7:30 a.m. and 2:00 p.m., Monday through Friday.

All futures contracts trade continuously between 7:30 a.m. and 2:00 p.m., Monday through Friday.

▸ true

▸ false

Bubblyparabola   21   1 Reply

doquangnhat

With futures contracts, the price at which the commodity must be delivered is

With futures contracts, the price at which the commodity must be delivered is

[html]With futures contracts, the price at which the commodity must be delivered is

▸ set when the futures contract is sold.

▸ set when the contract expires.

▸ is equivalent to the strike price for an options contract.

▸ changes frequently during

18iq   24   1 Reply

heavenlyangel

Which of the following features are shared by futures contracts and options?I.They have specified ...

Which of the following features are shared by futures contracts and options?I.They have specified ...

[html]Which of the following features are shared by futures contracts and options?

I.

exteesy07   20   1 Reply

jmoline2

Which of the following characteristics apply to futures contracts?I.Futures contracts are an ...

Which of the following characteristics apply to futures contracts?I.Futures contracts are an ...

[html]Which of the following characteristics apply to futures contracts?

I.

ellie425   23   1 Reply

firebug210

Which of the following are specifically stated in futures contracts?I.the quantity of the commodity ...

Which of the following are specifically stated in futures contracts?I.the quantity of the commodity ...

[html]Which of the following are specifically stated in futures contracts?

I.

tunisia81   30   1 Reply

annalass

The seller of a futures contract

The seller of a futures contract

[html]The seller of a futures contract

▸ has the option of canceling the contract the following day if the price is not acceptable to him/her.

▸ is legally bound to make delivery of the specified item on the specified day.

▸ receives the entire co

agoldberg2011   25   1 Reply

kuteeme

The amount paid at the time a futures contract is sold

The amount paid at the time a futures contract is sold

[html]The amount paid at the time a futures contract is sold

▸ represents the maximum loss for the buyer of the contract.

▸ represents the maximum profit for the buyer of the contract.

▸ is the initial margin deposit.

▸ is the total value of the

jene277   36   1 Reply

stanka82

Although the major commodities exchanges continue to operate separately, ownership has been concentrated under

Although the major commodities exchanges continue to operate separately, ownership has been concentrated under

[html]Although the major commodities exchanges continue to operate separately, ownership has been concentrated under

▸ The New York Mercantile Exchange.

▸ The Chicago Board of Trade.

▸ The Chicago Mercantile Exchange.

▸ The New York Stock Exchang

Blakksheep33   23   1 Reply

chevy87

While stock index options can be used to play the market as a whole, they are also effective in ...

While stock index options can be used to play the market as a whole, they are also effective in ...

While stock index options can be used to play the market as a whole, they are also effective in protecting equity portfolios against falling markets.

▸ true

▸ false

johnnyappleseed   17   1 Reply

majudomminick