Which of the Following Statements Is Most CORRECT

question 1

Multiple Choice

Which of the following statements is most CORRECT?

• A) Futures contracts generally trade on an organized exchange and are marked to market daily.
• B) Goods are never delivered under forward contracts, but are almost always delivered under futures contracts.
• C) There are futures contracts for currencies but no forward contracts for currencies.
• D) Futures contracts don't have any margin requirements but forward contracts do.
• E) One advantage of forward contracts is that they are default free.

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Definitions:

Annual Premiums

Regular payments made on a yearly basis for insurance coverage.

Expected NPV

The anticipated net present value of a project, investment, or financial strategy, calculated by integrating all possible outcomes weighted by their probabilities.

Full-Ride Scholarship

A scholarship that covers all expenses of a student's education, including tuition, room, board, and sometimes additional costs like books and fees.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1.