Which of the Following Features Apply to a Futures Contract

question 16

Multiple Choice

Which of the following features apply to a futures contract?
I. zero-sum game
II. derivative security
III. maturity date
IV. settlement procedure

• A)I and II only
• B)I and III only
• C)II and III only
• D)II, III, and IV only
• E)I, II, III, and IV

---

Definitions:

Average Rate

A statistical measure that represents the central or typical value in a set of rates or ratios, often used in financial contexts to describe mean returns or interest rates.

Investment Account

An account that holds securities, cash, and other investments for investment purposes.

Investing

The act of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit.

Compounded Annually

The process where interest earned in one period is added to the principal sum and then interest in the next period is calculated on the new total.