Futures Contracts Are Similar to Forward Contracts in That They

question 26

Multiple Choice

Futures contracts are similar to forward contracts in that they both

• A) Have volatile price movements and strong interest from buyers and sellers.
• B) Give the holder the option to make a transaction in the future.
• C) Have similar liquidity.
• D) Have similar credit risk.
• E) None of the above.

---

Definitions:

Nerve Impulses

Electrical signals that travel along neurons, carrying messages between the brain and other parts of the body.

Bipolar Cells

Cells in the retina that connect photoreceptors to ganglion cells, playing a key role in visual processing.

Ganglion Cells

Neurons located in the retina of the eye that process visual information received from photoreceptors and transmit it to the brain.

Photoreceptor Cells

Specialized cells in the retina of the eye that convert light into signals that can be processed by the brain, allowing for vision.