A Futures Contract

question 44

Multiple Choice

A futures contract

• A)is tailor-made to fit the needs of the buyer and the seller.
• B)has more credit risk than a forward contract.
• C)is marked to market more frequently than a forward contract.
• D)has a shorter time to delivery than a forward contract.

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Definitions:

Actively Manage

The proactive and continuous involvement in overseeing and directing operations or activities to achieve specific objectives.

Rationality And Fairness

The principle of making decisions based on logic and impartiality, ensuring equitable treatment for all involved.

Negotiator

A person engaged in negotiations, skilled in reaching agreements or resolving conflicts.

Athlete

An individual who competes in physical sports, often displaying strength, speed, and endurance.