Which of the Following Statements Regarding Futures Contracts Is False

question 35

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:

Stanford-Binet

A standardized test that assesses intelligence and cognitive abilities in individuals, often used to diagnose intellectual disabilities or giftedness.

IQ

Stands for Intelligence Quotient, a score derived from one of several standardized tests designed to assess human intelligence.

Average

A numerical expression of the central or typical value in a set of data, calculated typically as the sum of the values divided by the number of values.

WISC-IV

Wechsler Intelligence Scale for Children, Fourth Edition; a standardized test designed to measure the intellectual ability of children between the ages of 6 and 16.