Which of the Following Is False Regarding Futures and Forward

question 40

Multiple Choice

Which of the following is false regarding futures and forward contracts?

• A) Futures are only traded on an exchange.
• B) Both forward and futures contracts are marked-to-market.
• C) Forward contracts are more flexible than futures contracts.
• D) Futures contracts have margin requirements while forward contracts do not.
• E) Forward contracts and futures contracts both specify the price for future delivery.

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Definitions:

Stanley Milgram

A psychologist known for his studies on obedience, demonstrating people's willingness to follow orders from authority figures even to the extent of harming others.

Social Psychologist

A professional who studies how individual thoughts, feelings, and behaviors are influenced by the social environment and the presence of other people.

Destructive Obedience

The concept where individuals comply with harmful orders or directives, often from an authority figure, against their own personal morals or ethical codes.

Milgram Experiments

A series of social psychology experiments conducted by Stanley Milgram, which measured the willingness of study participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.