The Terms of Futures Contracts, Such as the Quality and Quantity

question 45

Multiple Choice

The terms of futures contracts, such as the quality and quantity of the commodity and the delivery date, are

• A) specified by the buyers and sellers.
• B) specified only by the buyers.
• C) specified by the futures exchanges.
• D) specified by brokers and dealers.
• E) None of the options are correct.

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Definitions:

Institutional Investor

An organization, such as a bank, pension fund, mutual fund, or insurance company, that invests large sums of money into the financial markets.

Zero-Coupon Bonds

Bonds issued at a discount to their face value, paying no periodic interest but redeemed at par value at maturity.

Par Value

The face value of a bond or stock, as stated by the issuing company.

Life Insurers

Companies that provide policies to individuals that pay beneficiaries upon the policyholder’s death, or provide coverage for other life-related risks.