Futures Contracts Differ from Forward Contracts in That

question 8

Multiple Choice

Futures contracts differ from forward contracts in that:

• A)forward contracts always require a margin deposit.
• B)futures contracts are between the individual hedger and speculator.
• C)futures contracts are personalised,unique contracts; forwards are standardised.
• D)futures contracts are marked to market daily with changes in value added or subtracted from buyer and seller.

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Definitions:

Perceptual Adaptation

Perceptual adaptation is the ability of the body or brain to adjust to an altered perceptual environment, allowing for maintained performance despite changes.

Size Constancy

The perceptual phenomenon where the perceived size of an object remains constant despite changes in the distance or size of the image on the retina.

Restored Vision

The return of sight or improvement in vision that may occur naturally or through medical intervention after a period of impairment or loss.

Perceptual Set

A predisposition to perceive things in a certain way, based on expectations, experiences, and context.