Futures Contracts Differ from Forward Contracts in That

question 41

Multiple Choice

Futures contracts differ from forward contracts in that

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

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Definitions:

Anonymity

The condition in which an individual's identity is unknown or kept private.

Destructive Process

Any process that systematically breaks down or deteriorates the structure, function, or integrity of an object, system, or organism.

Hostility

Aggressive behavior or attitudes expressed towards others, often stemming from anger or antipathy.

Obedience

The act of following orders or instructions, especially those from an authority figure, without question.