Which One of the Following Statements Is True Regarding Futures

question 13

Multiple Choice

Which one of the following statements is true regarding futures contracts?

• A)Futures prices are generally set equal to the spot price on the delivery date.
• B)Futures contracts generally grant the buyer the option to accept only a portion of the contract.
• C)Cost and convenience are the two key considerations when establishing the settlement procedures.
• D)The seller of a futures contract has the option to deliver cash in an amount equal to the contract value in lieu of the underlying asset.
• E)The buyer and seller of the contract negotiate the price on the maturity date.

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Definitions:

Termination

The act of ending something, such as a contractual agreement, employment, or service, either by mutual agreement or through a unilateral decision.

Gender Discrimination

The unfair treatment of individuals based on their gender, violating principles of equality and justice.

Equal Employment

A principle that mandates equal job opportunities for all, regardless of race, gender, or other non-merit factors.

Breastfeed

The act of feeding a baby or young child milk from a woman's breast, which is a recommended practice for infant nutrition.