Which of the Following Characteristics Is Similar in Both Futures

question 23

Multiple Choice

Which of the following characteristics is similar in both futures and forward contracts?

• A) Future asset transactions are conducted at an agreed price.
• B) Contracts are sold through organized exchanges.
• C) Contract terms are standardized.
• D) Price changes are settled daily.

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Definitions:

Perfectly Elastic

A state of demand or supply in which the quantity demanded or supplied changes infinitely in response to any change in price.

Constant Price

An economic term that refers to prices that have been adjusted for inflation, allowing for comparison of purchasing power over time.

Uniform Price

A pricing strategy where goods or services are sold at the same price to all customers, regardless of the quantity purchased.

Unit-Elastic

Denotes a situation where a one percent change in price leads to an equal one percent change in quantity demanded or supplied.