Which of the Following Is Not Correct Concerning Futures Contracts

question 57

Multiple Choice

Which of the following is not correct concerning futures contracts?

• A)Entails an obligation rather than an option.
• B)Contract price is set at the beginning of the contract.
• C)Contracts are exchange-traded.
• D)Gains or losses are recorded at contract expiration.

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Definitions:

Specifically Branded Product

A specifically branded product is a particular item that is marketed and sold under a unique brand name, distinguishing it from competitors and generic alternatives.

Banker

is a professional who works in the banking sector, involved in managing monetary transactions, and providing financial advice to clients.

Lender

An entity or individual that provides funds to borrowers with the expectation of being repaid with interest.

Personally Liable

The legal responsibility of an individual to settle debt or legal obligations from their personal assets.