Which of the Following Is a Characteristic of Futures Contracts

question 23

Multiple Choice

Which of the following is a characteristic of futures contracts?

• A) They are marked to market daily.
• B) They can be sold short but only on an uptick.
• C) They are handled by specialists on futures exchanges.
• D) They have no daily price limits.

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Definitions:

Lower Entropy

A state or condition of decreased disorder or randomness in a system, often associated with increased order or organization.

Oxidation

A chemical reaction involving the loss of electrons or an increase in oxidation state by a molecule, atom, or ion.

Substance

A form of matter that has a specific chemical composition and distinct physical properties.

Electrons

Subatomic particles with a negative charge, found orbiting the nucleus of an atom, involved in chemical bonds and electrical conductivity.