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:

Corporate Philanthropy

The act of a corporation or business promoting the welfare of others, typically through charitable donations of funds or time.

Corporate Social Responsibility Strategies

Policies and practices implemented by companies to act ethically and contribute positively to societal well-being, environmental sustainability, and economic prosperity.

Social Responsibility Strategy

A plan adopted by a business to engage in practices that have positive effects on the society and environment.

Legal Maneuvering

Strategic actions or procedures aimed at gaining an advantage or resolving issues within the framework of the legal system.