FUNDAMENTALS OF FUTURES AND
OPTIONS MARKETS 9TH EDITION JOHN C
HULL TEST BANK CERTIFICATION REVIEW
SET 2026 ANSWERS GUARANTEED PASS
⫸ Futures trading is said to be a "Zero Sum" game because. Answer: for
every winning trade there is a losing trade of an equal dollar amount
⫸ Two of the primary reasons why commodity futures volume has
increased so dramatically over the last 30 years are. Answer: increased
price volatility in the underlying cash markets and the emergence of
cheaper electronic trading
⫸ (T or F) By definition, the quantity of bushels traded in corn futures
cannot exceed the quantity of bushels grown and produced in the USA
in a given year. Answer: False
⫸ If a trader initiates a position by going Long 2 December corn futures
contracts, and never offsets or liquidates her contracts, what is her
obligation?. Answer: The trader is obligated to physically accept
delivery of 10,000 bushels of corn at contract delivery time at a Chicago
area storage facility
⫸ (T or F)A very high stock-to-use number is typically associated with
higher cash and futures prices.. Answer: False
, ⫸ What does the statue on top of the Chicago Board of Trade building
represent?. Answer: Ceres, the Roman Goddess of Agriculture
⫸ What is a futures contract?. Answer: a legal contract calling for the
acceptance or delivery of a commodity of a specific quality and quantity
to a specific delivery point on or by some subsequent data
⫸ Futures investments are said to provide leverage because of. Answer:
the initial investment capital is far less than the face value of the
investment itself
⫸ (T or F)Futures prices tend to respond to new supply and demand
information contained in WASDE reports.. Answer: True
⫸ A market order instructs your broker. Answer: to buy or sell a certain
number of commodity futures contracts as soon as possible at the best
possible price
⫸ (T or F)The system of margin accounting has helped ensure the
financial integrity of the Chicago Mercantile Exchange. Answer: True
⫸ What is meant by the term "tick" in futures trading?. Answer: It
represents the minimum amount by which a futures contract price can
change in a given trading session
OPTIONS MARKETS 9TH EDITION JOHN C
HULL TEST BANK CERTIFICATION REVIEW
SET 2026 ANSWERS GUARANTEED PASS
⫸ Futures trading is said to be a "Zero Sum" game because. Answer: for
every winning trade there is a losing trade of an equal dollar amount
⫸ Two of the primary reasons why commodity futures volume has
increased so dramatically over the last 30 years are. Answer: increased
price volatility in the underlying cash markets and the emergence of
cheaper electronic trading
⫸ (T or F) By definition, the quantity of bushels traded in corn futures
cannot exceed the quantity of bushels grown and produced in the USA
in a given year. Answer: False
⫸ If a trader initiates a position by going Long 2 December corn futures
contracts, and never offsets or liquidates her contracts, what is her
obligation?. Answer: The trader is obligated to physically accept
delivery of 10,000 bushels of corn at contract delivery time at a Chicago
area storage facility
⫸ (T or F)A very high stock-to-use number is typically associated with
higher cash and futures prices.. Answer: False
, ⫸ What does the statue on top of the Chicago Board of Trade building
represent?. Answer: Ceres, the Roman Goddess of Agriculture
⫸ What is a futures contract?. Answer: a legal contract calling for the
acceptance or delivery of a commodity of a specific quality and quantity
to a specific delivery point on or by some subsequent data
⫸ Futures investments are said to provide leverage because of. Answer:
the initial investment capital is far less than the face value of the
investment itself
⫸ (T or F)Futures prices tend to respond to new supply and demand
information contained in WASDE reports.. Answer: True
⫸ A market order instructs your broker. Answer: to buy or sell a certain
number of commodity futures contracts as soon as possible at the best
possible price
⫸ (T or F)The system of margin accounting has helped ensure the
financial integrity of the Chicago Mercantile Exchange. Answer: True
⫸ What is meant by the term "tick" in futures trading?. Answer: It
represents the minimum amount by which a futures contract price can
change in a given trading session
