Which of the Following Statements Is True

question 10

Multiple Choice

Which of the following statements is true?

• A)In a futures contract the buyer and seller agree on a price at time 0 and the bonds are delivered by the seller to the buyer 'at that time'.
• B)In a futures contract the buyer and seller agree on a price at time 0 and the bonds are delivered by the seller at a future point in time, for example, after three months.
• C)In a futures contract the buyer and seller enter into a contract at time 0, the contract is marked to market on a daily basis, and the buyer pays the futures price quoted at expiry.
• D)None of the listed options are correct.