Which of the Following Is Not a Correct Statement About

question 20

Multiple Choice

Which of the following is not a correct statement about foreign currency futures?

• A) futures contracts have a standardized maturity date
• B) futures contracts are an exchange-traded agreement
• C) futures contracts are not liquid
• D) futures contracts are "marked to market" daily

---

Definitions:

Discount Rate

The interest rate used in discounted cash flow analysis to present future cash flows in terms of their present value, important in investment and financial decision-making.

Internal Rate

is often a shortened form referring to the Internal Rate of Return (IRR), which estimates the profitability of potential investments.

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time to evaluate the profitability of an investment.

Preference Decision

A decision in which the acceptable alternatives must be ranked.