Futures Contracts

question 10

Multiple Choice

Futures contracts:

• A) are identical to forward contracts except for the size of the contract.
• 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 which helps eliminate credit risk.
• D) are less popular in organized trading then are forward contracts.
• E) are limited to contracts on financial assets.

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Definitions:

Species

A group of living organisms consisting of similar individuals capable of exchanging genes or interbreeding, classified together as having common characteristics.

Reproductively Isolated

A state in which different groups of organisms can no longer interbreed and produce fertile offspring, leading to speciation.

Fertile Offspring

Offspring that are capable of reproducing, indicating successful genetic combination and viability.

Species

A fundamental category in biological taxonomy, defined as a group of organisms capable of interbreeding and producing fertile offspring.