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Two Key Features of Futures Contracts That Make Them More

question 49

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Two key features of futures contracts that make them more in demand than forward contracts are:


Definitions:

Natural Selection

A mechanism of evolution posited by Charles Darwin, where organisms better adapted to their environment tend to survive and produce more offspring.

Predation

A biological interaction where one organism, the predator, hunts and consumes another organism, the prey, for food.

Proportionately

In a way that keeps a correct or appropriate relationship in size, amount, or degree between parts of a whole.

Average Size

A statistical measure that summarizes the central tendency of the size dimensions of a given set of objects or beings.

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