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:

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The capacity to do work or produce change, existing in various forms such as kinetic, potential, thermal, electrical, chemical, and nuclear.

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A star at the center of the Solar System that emits light and heat, essential for life on Earth.

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