Futures Contracts

question 94

Multiple Choice

Futures contracts:

• A) Are identical to forward contracts except for the length of time until the settlement date.
• B) Provide an option to purchase an asset at a specified price on the settlement date.
• C) Are marked to the market on a daily basis.
• D) Cannot be resold.
• E) Are limited to contracts on financial assets.

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Definitions:

Staples

Everyday office supply products such as paper, pens, and staplers.

Office Supply Chain

The comprehensive flow of office goods and services from suppliers to consumers within an office or organizational setting.

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Programmable machines capable of performing a series of complex actions automatically.

Chambersburg

A town in Pennsylvania, USA, recognized for its historical significance and cultural heritage.