Question

Which of the following statements are true about futures markets? Check all that apply: a. The...

Which of the following statements are true about futures markets?

Check all that apply:

a. The clearinghouse acts as an intermediary between the two parties of the contract.

b. If one of the parties fails to meet its obligations, the clearinghouse bears all the losses from the failure.

c. A trade in which a trader takes an opposite position to their currently open position is called a reversing trade.

d. Open interest can be defined as a sum of the long and short positions.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

a. The clearinghouse acts as an intermediary between the two parties of the contract.

c. A trade in which a trader takes an opposite position to their currently open position is called a reversing trade.

d. Open interest can be defined as a sum of the long and short positions.

These statement are true.

While the losses are not beared by the Intermediaries. So, only option b is false.

NOTE: The answer to your question has been given below/above. If there is any query regarding the answer, please ask in the comment section. If you find the answer helpful, do upvote. Help us help you.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following features distinguish futures markets from forwards markets?  (Choose ALL the correct answer(s) that...
Which of the following features distinguish futures markets from forwards markets?  (Choose ALL the correct answer(s) that apply) Standardization Use of Margin account to trade Easy to get in and get out of positions The futures have no expiration date
Which of the following statements is correct about closing (exiting) the futures position before maturity? You...
Which of the following statements is correct about closing (exiting) the futures position before maturity? You will close at a gain if you were short and the futures price went up between enter and exit The clearinghouse will close your position at your first indication even if no other trader can take your place in the market If you are long, you will need to short the same contract to exit Even if you close prior to maturity, you are...
Which of the following statements about the median are true? Check all that apply A)There can...
Which of the following statements about the median are true? Check all that apply A)There can be more than one B)It can be found for an open ended distribution C)It is appropriate for ordinal scale D)It can be found when there are undermined score A is not a correct answer. C is correct but I'm not sure about the rest.. can someone help? Thank you
Which one of the following is an example of Agricultural Commodity Futures Markets studied in this...
Which one of the following is an example of Agricultural Commodity Futures Markets studied in this course? a. Kansas City Board of Trade (KCBOT) b. Minneapolis Grain Exchange (MGE) c. Tokyo Grain Exchange (TGE) d. All of the above A good predictor of the local cash price in a given location is the ______ contract price adjusted for a multiple year average historical basis. a. spot b. futures c. local d. market
Which of the following are true about all normal distributions? Check all that apply A. They...
Which of the following are true about all normal distributions? Check all that apply A. They are defined by the mean and standard deviation. B. They are bimodal. C. They are categorically sharp. D. They are all centered at zero. The z-score corresponding to an observed value of a variable tells you the number of standard deviations that the observation is from the mean A. True B. False A positive z-score indicates that the observation is A. above the mean...
5. Bureaucracy Which of the following statements about government bureaus are true? Check all that apply....
5. Bureaucracy Which of the following statements about government bureaus are true? Check all that apply. A government bureau receives its funding from the legislature. A government bureau does not maximize profit. If the legislation that established the government bureau in the first place is repealed, there is definitely still a need for the government bureau.
Which of the following statements about the annual report are true? (Select all that apply.) Check...
Which of the following statements about the annual report are true? (Select all that apply.) Check All That Apply Annual reports of public companies include an assessment of the company’s internal control procedures. Annual reports of public companies include an assessment of the company’s internal control procedures. The company’s auditor prepares the financial statements while its management prepares the other information and disclosures required in the annual report. The company’s auditor prepares the financial statements while its management prepares the...
Which of the following statements about Meiosis are true? --CHECK ALL THAT APPLY-- 1.Homologous chromosomes seperate...
Which of the following statements about Meiosis are true? --CHECK ALL THAT APPLY-- 1.Homologous chromosomes seperate during Anaphase 2 2.Cytokinesis takes place in prophase 2 3.Homologous chromosomes seperate during Anaphase 1 4.Nuclei reform during in Telophase 2 5.Homologous chromosomes pairs align at the metaphase plate in Anaphase 2 6. Sister Chromatids seperate during Anaphase 2
1.) Which of the following is TRUE about a parallel coordinate plot? Check all that apply....
1.) Which of the following is TRUE about a parallel coordinate plot? Check all that apply. It is useful for displaying summary statistics. It uses lines to convey information. It uses bubbles to capture the magnitude of the variables. It captures spatial information It is useful for displaying values of multiple numerical variables associated with each value of a numerical varaiable.. It is useful for displaying values of three or more numerical variables associated with each value of a categorical...
Which of the following statements is true? (Check all that apply.) A. Cost-effective controls should be...
Which of the following statements is true? (Check all that apply.) A. Cost-effective controls should be implemented to reduce risk. B. Risk should never be accepted, even if it is within the company’s risk tolerance range. C. The benefits of implementing controls are generally easier to quantify accurately than are the costs of implementing controls. D. In evaluating internal controls, management must consider factors other than those in the expected cost/benefit calculation.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT