As the Value of a Futures Contract Is Derived from the Value

question 38

Multiple Choice

As the value of a futures contract is derived from the value of the underlying instrument, futures contracts are commonly called ________.

• A) option instruments.
• B) forward instruments.
• C) index instruments.
• D) derivative instruments.

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Definitions:

Breach of Contract

The failure to perform any term of a contract, written or oral, without a legitimate legal excuse.

Merchant

An individual or business involved in the wholesale or retail sale of goods.

Firm Offer

A proposal in business transactions that remains valid for a specified period and cannot be revoked during that time.

Merchant

An individual or business engaged in the wholesale or retail trading of goods and services, traditionally involved in buying and selling with the aim of earning a profit.