Which one of the following statements regarding

Info icon This preview shows pages 7–10. Sign up to view the full content.

View Full Document Right Arrow Icon
11. Which one of the following statements regarding delivery is true? A. Most futures contracts result in actual delivery. B. Only one to three percent of futures contracts result in actual delivery. C. Only fifteen percent of futures contracts result in actual delivery. D. Approximately fifty percent of futures contracts result in actual delivery. E. Futures contracts never result in actual delivery. Virtually all traders enter reversing trades to cancel their original positions, thereby realizing profits or losses on the contract. Difficulty: Moderate 12. Which one of the following statements regarding delivery is false? Virtually all traders enter reversing trades to cancel their original positions, thereby realizing profits or losses on the contract. Difficulty: Moderate 22-7
Image of page 7

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Chapter 22 - Futures Markets 13. You hold one long corn futures contract that expires in April. To close your position in corn futures before the delivery date you must The long position is considered the buyer; to close out the position one must take a reversing position, or sell the contract. Difficulty: Moderate 22-8
Image of page 8
Chapter 22 - Futures Markets 14. Which one of the following statements is true? The maintenance margin applies to the value of the account after the account is opened; if the value of this account falls below the maintenance margin requirement and the holder of the contract will receive a margin call. A margin deposit can be made with cash or interest- earning securities; the margin deposit amounts depend on the volatility of the underlying asset. Difficulty: Moderate
Image of page 9

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 10
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern