Which of the Following Statements Are true

question 78

Multiple Choice

Which of the following statements are true?

• A) Futures contracts have less liquidity risk and credit risk than forward contracts.
• B) Futures contract prices are strongly linked to the prevailing level of the underlying spot index.
• C) Futures contract decrease in price, the further forward in time the delivery date is set.
• D) All of the above.
• E) None of the above.

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Definitions:

Satisfactory Solutions

Decisions or outcomes that meet the minimum requirements or criteria for acceptance, often applied in contexts of limited information or resources.

Transportation Model

An optimization and planning tool used in logistics to determine the most efficient and cost-effective way of distributing goods from several suppliers to several consumers.

Origins

Origins refer to the starting points, sources, or roots from which something originates or is derived, including products, concepts, or historical events.

Destinations

End points or locations towards which something or someone is directed or moving.