Which of the following best characterizes the profit of a buyer of a futures contract?
A) spot price at settlement minus futures price at purchase
B) futures price at settlement minus spot price at purchase
C) futures price at purchase minus spot price at settlement
D) spot price at purchase minus futures price at settlement
A
You might also like to view...
Each member of OPEC can increase its income by selling more oil than its output quota because
A) the demand for oil is perfectly elastic. B) by selling more at OPEC's cartel price, a member will automatically earn more income. C) each member's demand is more elastic than the total demand for oil. D) the demand for oil is inelastic so total revenue increases.
A possible rational reason why older people, on average, show less interest in learning how to use new technologies is because
A) older people are not as smart as (today's) young people. B) they are acting irrationally. C) they have fewer years to gain a return from learning how to use new technologies. D) the financial cost for older people is greater than the cost to younger people.