Which of the Following Is Not Correct Concerning Futures Contracts

question 4

Multiple Choice

Which of the following is not correct concerning futures contracts?

• A) They 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) Gains or losses are recorded at contract expiration.

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Definitions:

Interpersonal Communication

The process by which people exchange information, feelings, and meaning through verbal and non-verbal messages face-to-face.

Accuracy

The degree to which information, measurement, or calculation is correct and free from errors.

Distortion

The act of misrepresenting or altering information or reality, often to deceive or create a misleading impression.

Meta-Communication

The act of communicating about communication, often used to clarify or interpret the underlying message in an interaction.