Two Key Features of Futures Contracts That Make Them More

question 22

Multiple Choice

Two key features of futures contracts that make them more in demand than forward contracts are:

• A) futures are traded on exchanges and must be marked to the market.
• B) futures contracts allow flexibility in delivery dates and provide a liquid market for netting positions.
• C) futures are marked to the market and allow delivery flexibility.
• D) futures are traded in liquid markets and are marked to the market.
• E) All of

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Definitions:

Supply Chain Management

The administration of the flow of goods and services, involving the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption.

Supply Chain Strategy

A plan for managing all the steps necessary to produce and deliver products or services to customers, from sourcing raw materials to the final delivery.

Distribution Channels

The chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer.

System

A set of interacting or interdependent components forming an integrated whole.