A Futures Contract Is Similar to a Forward Contract Except

question 96

Multiple Choice

A futures contract is similar to a forward contract except that

• A) It calls for the price to determined at a later date
• B) It calls for delivery of the commodity today
• C) It sets a future date for delivery as compared to today's delivery under a forward contract
• D) It can be arranged by any two parties on an informal basis
• E) It is managed through an organized futures exchange

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Definitions:

Legally Binding

An agreement or contract that is enforceable by law, meaning parties must fulfill their specified obligations or face legal consequences.

Commission of Crime

The act of carrying out a criminal offense or the process by which a crime is perpetrated.

Void

A term describing a contract or agreement that has no legal force or effect and is unenforceable.

Digital Records

Digital Records refer to information or data that is created, stored, and managed in electronic format, often used for documentation and archival purposes.