Futures Differ from Forwards Because They Are

question 38

Multiple Choice

Futures differ from forwards because they are

• A)used to hedge portfolios.
• B)used to hedge individual securities.
• C)used in both financial and foreign exchange markets.
• D)a standardized contract.

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Definitions:

Psilocybin

A naturally occurring psychedelic compound produced by more than 200 species of fungi.

Ergot Compounds

Chemical substances derived from the fungus Claviceps purpurea (ergot), which infects cereal grains and possesses psychoactive and medicinal properties, historically involved in the cause of ergotism or "St. Anthony's fire."

Aflatoxin

A group of toxins produced by certain fungi, which are found on agricultural crops such as maize, peanuts, cottonseed, and nuts, and are highly carcinogenic.

Penicillin

A type of antibiotic derived from Penicillium fungi, effective against many bacterial infections by inhibiting cell wall synthesis.