Standardization of Derivative Contracts

question 33

Multiple Choice

Standardization of derivative contracts

• A)increases their liquidity.
• B)is the rule with respect to contracts whose underlying asset is a financial security, but not for contracts whose underlying asset is a commodity.
• C)is the rule with respect to contracts whose underlying asset is a commodity, but not for contracts whose underlying asset is a financial asset.
• D)has been proposed many times by financial analysts, but has not yet been carried out by the SEC.

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