Which of the Following Is Not True Regarding Futures Contracts

question 86

Multiple Choice

Which of the following is not true regarding futures contracts?

• A) Unlike forward contracts, they are generally traded on an exchange.
• B) Futures contracts are standardized with respect to delivery date and size of the contract.
• C) There is an active over-the-counter market for currency futures contracts.
• D) Currency futures can be used by speculators who attempt to profit from exchange rate movements.

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Definitions:

Open Program

A flexible framework or guideline that allows adjustment and modifications based on feedback or changing conditions.

Closed Program

A system or operation that is not open to external influences or modifications, often operating within a restricted or predefined set of rules.

Genetically Established

Pertains to traits or characteristics that are predetermined by an individual’s DNA.

Simultaneous Ambivalent Behavior

The exhibition of opposing emotions or actions towards the same object, person, or situation at the same time.