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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