Which One of the Following Characteristics Is Similar in Both

question 102

Multiple Choice

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

• A) Future asset transactions are conducted at a price agreed upon earlier.
• B) Contracts are sold through organized exchanges.
• C) Contract terms are standardized by type of commodity.
• D)Price changes are settled daily in a process known as mark-to-market.

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Definitions:

Constrained Resource

A limited resource within a system that significantly affects the throughput or output of the system.

Special Order

A special order refers to a one-time purchase order often at a discounted price, usually for large quantities that is outside the normal scope of operations.

Direct Labor Hours

Total working hours logged by employees who are intimately involved with the production operations.

Profitable Use

The utilization of resources or assets in a manner that generates a significant positive return or profit.