Which of the following is true about the futures contract? i. they trade in the over...
Which of the following is true about the futures contract?
i. they trade in the over the counter market
ii. they are settled daily
iii. they are subject to default risk
iv. a margin deposit is required for both long and short positions
v. a contract specifies a range of delivery dates (rather than a single date)
Choices: multiple of the choice might be correct
Homework Answers
Ans iv. a margin deposit is required for both long and short positions and ii. they are settled daily
All other options are incorrect.
Forward contracts are subject to default risk .
Add Answer to:
Which of the following is true about the futures contract?
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3. Which of the following statements about futures and forwards is most accurate? Futures a. Are...
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1. Consider the futures contract to buy/sell December gold for $500 per ounce on the New...
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1. Which of the following trades implies that ownership has been taken? a. Buying a futures...
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I need Summary of this Paper i dont need long summary i need What methodology they used , what is the purpose of this...
I need Summary of this Paper i dont need long summary i need
What methodology they used , what is the purpose of this paper and
some conclusions and contributes of this paper. I need this for my
Finishing Project so i need this ASAP please ( IN 1-2-3 HOURS
PLEASE !!!)
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3. Which of the following statements about futures and forwards is most accurate? Futures a. Are subject to default risk, but forwards are not. b. Are individualized contracts, but forwards are standardized. C. Require that traders post margin in order to trade, but forwards typically require no cash transaction until the delivery date.
1. Consider the futures contract to buy/sell December gold for $500 per ounce on the New York Commodity Exchange (CMX). The contract size is 100 ounces. The initial margin is S3,000, and the maintenance margin is $1,500. 1.a. Suppose that you enter into a long futures contract to buy December for $500 per ounce on the CMX What change in the futures price will lead to a margin call? If you enter a short futures contract, what futures price will...
15.6. [Introductory Derivatives Sample Question 30] Determine which of the following is NOT a distinguishing characteristic of futures contracts, relative to forward contracts. (A) Contracts are settled daily, and marked-to-market. (B) Contracts are more liquid, as one can offset an obligation by taking the opposite position. © Contracts are more customized to suit the buyer's needs. (D) Contracts are structured to minimize the effects of credit risk. (E) Contracts have price limits, beyond which trading may be temporarily halted. 15.7....
1. Which of the following trades implies that ownership has been taken? a. Buying a futures contract. b. Selling a futures contract. c. Buying a stock. d. Shorting a stock. e. None of the above implies ownership. The following transactions are the only ones made during the first 4 days a futures contract trades. Answer question 2 based on this table. DAY TRANSACTION S O 1 A Long 30, B Short 30 2 A Long 55, C Short 55 3...
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I need Summary of this Paper i dont need long summary i need
What methodology they used , what is the purpose of this paper and
some conclusions and contributes of this paper. I need this for my
Finishing Project so i need this ASAP please ( IN 1-2-3 HOURS
PLEASE !!!)
SPECIAL ARTICLES tole of Monetary Policy C Rangarajan What should be the objectives of monetary policy? Does the objective of price stability conflict with the goal of achieving...
LO 10-6, 10 10-36 Based on an assessment of audit risk, the auditors are concerned with the following two risks: 1. The risk that that the client might be making duplicate payments to vendors. 2. The risk that the client's accounting clerk might be making unauthorized payments to himself. a. Assuming that the client has a manual accounting system, describe how the auditors can design a test to identify the duplicate payments and unauthorized payments. b. Assuming that the client...
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