Multiple Choice
Why is it difficult to compute the unrealised return on a futures contract?
A) The risk-free rate may change
B) Future dividends are unknown
C) Futures trading requires an upfront payment that consists a fixed percentage of the total value of the security
D) The cash outlay in a futures contract is substantially less than required for purchasing the underlying security
Correct Answer:
Verified
Correct Answer:
Verified
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