A Futures Contract

question 17

Multiple Choice

A futures contract

• A)is tailor-made to fit the needs of the buyer and the seller.
• B)has more credit risk than a forward contract.
• C)is marked to market more frequently than a forward contract.
• D)has a shorter time to delivery than a forward contract.
• E)has more price risk than a forward contract.

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Definitions:

Dishonest Conduct

Actions that are deceitful, fraudulent, or lack integrity, often intended to gain an unfair advantage.

Just Cause

A valid reason to dismiss an employee without notice.

Summary Dismissal

A legal action resulting in the immediate termination of an employee or ending of a contract without notice, due to a breach or misconduct.

Termination

The act of ending something, such as a contractual agreement, employment, or service, either by mutual agreement or through a unilateral decision.