The return on a Futures contract

A) is Highly related to the low margin requirement B) is always equal to or greater than zero C) Tends to be fairly stable from one trading day to the next D) is solely related to the current price of the underlying item

Question

Neil Hull

Business

23 April, 14:40

The return on a Futures contract

A) is Highly related to the low margin requirement B) is always equal to or greater than zero C) Tends to be fairly stable from one trading day to the next D) is solely related to the current price of the underlying item

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Answers (1)

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Brooks Haley · Answer 1

The correct answer is letter "A": is highly related to the low margin requirement.

Explanation:

A futures contract can protect producers and suppliers from price changes. It is an agreement between the buyer and seller of a security that the asset is going to be bought at a certain price and time in the future. It is said, future contracts are related o low margin requirements since future brokers request usually a small amount of money as the initial margin per each contract.

The return on a Futures contractA) is Highly related to the low margin requirement B) is always equal to or greater than zero C) Tends to be fairly stable from one trading day to the next D) is solely related to the current price of the underlying item

The return on a Futures contract

A) is Highly related to the low margin requirement B) is always equal to or greater than zero C) Tends to be fairly stable from one trading day to the next D) is solely related to the current price of the underlying item