Two Key Features of Futures Contracts That Make Them More

question 62

Multiple Choice

Two key features of futures contracts that make them more in demand than forward contracts are:

• A)futures are traded on exchanges and must be marked to the market.
• B)futures contracts allow flexibility in delivery dates and provide a liquid market for netting positions.
• C)futures are marked to the market and allow delivery flexibility.
• D)futures are traded in liquid markets and are marked to the market.
• E)All of the above.

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Definitions:

Power Distribution System

A network of electrical components deployed to distribute and deliver power from the supply system to the consumer effectively.

Diagram

A diagram is a simplified drawing representing the structure or workings of something, serving as a plan, schematic, or model.

Phase Voltage

The voltage measured across a single phase in a polyphase electrical system, important for understanding the distribution of power in systems like three-phase AC currents.

Line Voltage

The voltage present in the main electrical power lines, typically higher than what is safe for direct consumer use without transformation.