Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 41 Speculators may invest in futures markets rather than spot (cash) markets because: a. Futures markets have lower transaction costs and higher leverage. b.

QUESTION 41

  1. Speculators may invest in futures markets rather than spot (cash) markets because:

    a. Futures markets have lower transaction costs and higher leverage.

    b. Futures markets are less price efficient.

    c. Spot markets are less price efficient.

    d. Futures markets provide leverage.

QUESTION 42

  1. Which of the following terms is not specified in a futures contract? (1) The contract size. (2) The maximum acceptable price variation during the term of the contract. (3) The acceptable grade of the commodity of the contract. (4) The settlement price.

    a. 2 only.

    b. 2 and 3.

    c. 1, 3, and 4.

    d. 1, 2, 3 and 4.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mein Ultimativer Weihnachts Planer

Authors: Zizo Nimane

1st Edition

B0CM2J8GTG

More Books

Students also viewed these Finance questions