A Future Contract Is More Flexible Than a Forward Contract

question 46

Multiple Choice

A future contract is more flexible than a forward contract because:

• A) the future price is preset today.
• B) it is available in a wider variety of amounts.
• C) it trades on an organized exchange.
• D) prices are published in the newspaper.

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Definitions:

NaOCl

Sodium hypochlorite, commonly known as bleach, a chemical widely used as a disinfectant and bleaching agent.

Acetic Acid

Acetic acid is a weak carboxylic acid with the chemical formula CH3COOH, recognizable by its sour taste and pungent smell, commonly found in vinegar.

Isopropyl Alcohol

A secondary alcohol commonly used as a solvent and disinfectant, known for its ability to evaporate quickly.

Acetone

A volatile, colorless solvent widely used in organic chemistry and as a nail polish remover, known for its ability to dissolve many plastics and synthetic fibers.