Which of the Following Best Describes the Risks Associated with Futures

question 57

Multiple Choice

Which of the following best describes the risks associated with futures contracts?

• A) The possibility of making an unexpected profit on a futures contract
• B) The probability of making a loss, or a fall in the value of a futures contract
• C) The variability of changing prices and costs associated with buying and selling futures contracts
• D) The possibility of loss associated with the default by the holder of the opposite position in the contract

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