Which of the Following Statements Regarding Futures Contracts Is FALSE

question 23

Multiple Choice

Which of the following statements regarding futures contracts is FALSE?

• A)Both the buyer and the seller can get out of the contract at any time by selling it to a third party at the current market price.
• B)Futures prices are not prices that are paid today.Rather,they are prices agreed to today,to be paid in the future.
• C)Futures contracts are traded anonymously on an exchange at a publicly observed market price and are generally very illiquid.
• D)Traders are required to post collateral,called margin,when buying or selling commodities using futures contracts.

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Definitions:

Maladaptive Behavior

Actions or tendencies that negatively affect an individual's ability to function adequately in work, relationships, or other areas of life.

Observational Learning

Observational learning is a learning process through which individuals alter their behavior after observing others, modeling their actions based on what they have observed.

Habituation

The process by which there is a decrease in response to a stimulus after being repeatedly exposed to it, highlighting an organism's ability to adapt to its environment.

Emotional Arousal

The state of being emotionally stimulated or excited, which can affect both physiological and psychological functioning.