The Terms of Futures Contracts Such as the Quality and Quantity

question 85

Multiple Choice

The terms of futures contracts such as the quality and quantity of the commodity and the delivery date are

• A) specified by the buyers and sellers.
• B) specified only by the buyers.
• C) specified by the futures exchanges.
• D) specified by brokers and dealers.
• E) none of these.

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Definitions:

Treasury Bills

Short-term government securities issued at a discount from the face value and maturing at par, typically within a year.

Beta

A measure of a stock's volatility in relation to the overall market, indicating the stock's risk compared to that of the average market risk.

Risk Level

The degree of uncertainty or potential financial loss inherent in an investment decision.

Standard Deviation

An indicator of the degree of spread or diversity within a collection of numbers.