Which One of the Following Is Not Correct Concerning Futures

question 6

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) Gains and losses are not settled until the contract expires.

Understand the legal distinctions between lost, mislaid, and abandoned property.

Recognize the role and characteristics of documents of title, such as warehouse receipts and bills of lading.

Identify the legal effects of confusion and commingling on property ownership.

Understand the implications of insurable interest and its necessity for purchasing insurance on property.

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Definitions:

Tax

A mandatory contribution to state revenue, levied by the government on workers' income and business profits or added to the cost of some goods, services, and transactions.

Burden

A heavy load, often referring to the impact or cost of something on individuals or society.

Buyers

Individuals or entities that purchase goods or services for personal use or for the purpose of reselling.

Sellers

Individuals or entities that offer products or services for sale to buyers in a marketplace.