22-1Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.Chapter22TestBank-StaticStudent:___________________________________________________________________________MultipleChoiceQuestions1.AfuturescontractA.isanagreementtobuyorsellaspecifiedamountofanassetatthespotpriceontheexpirationdateofthecontract.B.isanagreementtobuyorsellaspecifiedamountofanassetatapredeterminedpriceontheexpirationdateofthecontract.C.givesthebuyertheright,butnottheobligation,tobuyanassetsometimeinthefuture.D.isacontracttobesignedinthefuturebythebuyerandthesellerofthecommodity.E.Noneoftheoptionsarecorrect.2.Thetermsoffuturescontracts__________standardized,andthetermsofforwardcontracts__________standardized.A.are;areB.arenot;areC.are;arenotD.arenot;arenotE.are;mayormaynotbe3.Futurescontracts__________tradedonanorganizedexchange,andforwardcontracts__________tradedonanorganizedexchange.A.arenot;areB.are;areC.arenot;arenotD.are;arenotE.are;mayormaynotbe4.Inafuturescontract,thefuturespriceisA.determinedbythebuyerandthesellerwhenthedeliveryofthecommoditytakesplace.B.determinedbythefuturesexchange.C.determinedbythebuyerandthesellerwhentheyinitiatethecontract.D.determinedindependentlybytheprovideroftheunderlyingasset.E.Noneoftheoptionsarecorrect.5.Thebuyerofafuturescontractissaidtohavea__________position,andthesellerofafuturescontractissaidtohavea__________positioninfutures.A.long;shortB.long;longC.short;shortD.short;longE.margined;long22-2Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.6.Investorswhotakelongpositionsinfuturesagreeto__________ofthecommodityonthedeliverydate,andthosewhotaketheshortpositionsagreeto__________ofthecommodity.A.makedelivery;takedeliveryB.takedelivery;makedeliveryC.takedelivery;takedeliveryD.makedelivery;makedeliveryE.negotiatetheprice;paytheprice7.Thetermsoffuturescontracts,suchasthequalityandquantityoftheco...
