Which One of the Following Is Not Correct Concerning Futures

question 18

Multiple Choice

Which one of the following is not correct concerning futures contracts?

• A) Futures contracts entail an obligation rather than an option.
• B) The contract price is set at the beginning of the contract.
• C) The contracts are exchange-traded.
• D)All gains or losses are recorded at contract expiration.

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Definitions:

War of Jenkins' Ear

A conflict between Great Britain and Spain from 1739 to 1748, ignited by the mutilation of the British sea captain Robert Jenkins and representative of broader colonial and trade disputes.

Pursue Freedom

The act or process of seeking or striving for liberty and autonomy in one's life or society, often from oppression or restrictions.

American Colonies

The original thirteen British colonies in North America that declared independence in 1776 to form the United States.

1700s

The 18th century, a period marked by significant changes worldwide, including enlightenment thinking, industrial advances, and the American and French revolutions.