Futures Contracts Have Many Advantages Over Forward Contracts Except That

question 86

Multiple Choice

Futures contracts have many advantages over forward contracts except that ________.

• A) futures positions are easier to trade
• B) futures contracts are tailored to the specific needs of the investor
• C) futures trading preserves the anonymity of the participants
• D) counterparty credit risk is not a concern on futures

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Definitions:

Instance Variable

A variable defined in a class for which each instantiated object of the class has a separate copy, or instance.

Local Variable

A variable that is declared within a block or method and is only accessible within that block or method.

Global Variable

A variable that is defined in a global scope, making it accessible from any part of the program, beyond just the block or function in which it was declared.

Void Method

A function in Java that does not return a value.