Two Key Features of Futures Contracts That Make Them More

question 24

Multiple Choice

Two key features of futures contracts that make them more in demand than forward contracts are:

• A) futures are traded on exchanges and must be marked to the market.
• B) futures contracts allow flexibility in delivery dates and provide a liquid market for netting positions.
• C) futures are marked to the market and allow delivery flexibility.
• D) futures are traded in liquid markets and are marked to the market.

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Definitions:

Semidesert

A dry area that has slightly more rainfall than a desert, which supports a sparse vegetation cover.

Dry Spells

Periods of below-average precipitation in a specific area, leading to prolonged dry conditions that can impact water supply, agriculture, and natural ecosystems.

Broadleaf Foliage

Leaves that are broad and flat, characteristic of deciduous trees and a variety of plants, contrasting with needle-like or scaled foliage in conifers.

Evergreen

Pertaining to plants that retain their leaves throughout the year, staying green and functional across all seasons.