Futures Contracts

question 36

Multiple Choice

Futures contracts:

• A)are identical to forward contracts except for the size of the contract.
• B)provides an option to purchase an asset at a specified price on the settlement date.
• C)are marked to the market on a daily basis.
• D)cannot be resold.
• E)are limited to contracts on financial assets.

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Definitions:

Approach-Approach

A psychological conflict involving a choice between two positive or desirable options.

Competitor

An individual or entity that competes against others for the same objective or for superiority in the same field.

Seniority

The concept of higher rank or status given to individuals based on the length of time spent within an organization or position.

Approach-Approach

A conflict arising from having to choose between two attractive alternatives.