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:

Investing

is the act of allocating resources, usually money, with the expectation of generating an income or profit.

Perpetuity

A type of annuity that pays an infinite series of cash flows, with no end date.

Rate Of Return

Earnings or losses experienced by an investment within a chosen period, measured as a percentage of the investment’s purchase cost.

Heirs

Individuals legally entitled to inherit a deceased person's assets.