Quiz Ch 17 – Desired Price Movement for Long Futures Position
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
What price movement favors someone holding a long position in a commodity futures contract?
What price movement favors someone holding a long position in a commodity futures contract?
What distinguishes single stock futures from stock index futures?
Which contract is the primary choice for trading in stock-index futures?
What is the primary mode of trading utilized for the majority of transactions in futures contracts?
What risk is effectively eliminated in futures contracts due to the exchange acting as the counterparty to each contract?
Which approach utilizes differences between actual future prices and their theoretically correct parity values for gain in futures trading?
What factor contributes to the convergence of futures and spot prices at the expiration of a futures contract?
What conclusion can be drawn from the fact that a futures contract priced at $5.70 pays $10 if Barack Obama won the 2012 presidential election?
What risk management technique does a hog farmer employ when selling hog futures?
What is the term used for the sole financial transaction undertaken by both the long and short parties when initiating a futures contract?