Largely determined the value of the dow divisor

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Reference no: EM132062664

1. Over the years ____________________ have largely determined the value of the Dow divisor.

a. bull markets

b. bear markets

c. stock splits

d. stock buybacks

2. The net asset value of a mutual fund will ______________________ with the purchase and sale of shares in the fund.

a. remain the same

b. rise and fall

c. fall and rise

d. fluctuate indeterminately

3. The futures contract is settled at the price initially agreed to when the contract is entered into, regardless of the commodity’s market price (cash or spot price) at the time of future delivery and payment, and regardless of any subsequent change in the value of the contract due to changes in the market price. In this way, producers, such as farmers and ranchers, who contract to sell their output for future delivery, protect themselves _______________________________.

a. from potentially higher spot (cash) prices, while forgoing the possibility that the actual cash prices might be even higher at the time of delivery

b. from potentially higher spot (cash) prices, while forgoing the possibility that the actual cash prices might be lower at the time of delivery

c. from potentially lower spot (cash) prices, while forgoing the possibility that the actual cash prices might be higher at the time of delivery

d. from potentially lower spot (cash) prices, while forgoing the possibility that the actual cash prices might be lower at the time of delivery

4. The futures contract is settled at the price initially agreed to when the contract is entered into, regardless of the commodity’s market price (cash or spot price) at the time of future delivery and payment, and regardless of any subsequent change in the value of the contract due to changes in the market price. Manufacturers, millers, meat packers and other commodity processors who contract to buy goods for future delivery _________________________________ .

a. forgo potentially high spot prices at the time of delivery to avoid the possible risk of higher prices

b. forgo potentially high spot prices at the time of delivery to avoid the possible risk of lower prices

c. forgo potentially low spot prices at the time of delivery to avoid the possible risk of lower prices

d. forgo potentially low spot prices at the time of delivery to avoid the possible risk of higher prices.

Reference no: EM132062664

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