A Futures Contract Is a Specialized Form of a Forward

question 113

Multiple Choice

A futures contract is a specialized form of a forward contract distinguished by a(n)

• A)organized exchange.
• B)standardized contract with unlimited price changes and margin requirements.
• C)clearinghouse in each futures market.
• D)both A and C.

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Definitions:

Compelled to Testify

The legal obligation of a witness to give testimony in a legal proceeding, even against their own interest, under penalty of law.

Affirmative Defense

A defense used in litigation where the defendant introduces evidence, which, if found to be credible, will negate criminal or civil liability, even if it is proven that the defendant committed the alleged act.

Breach of Contract

A violation of any of the agreed-upon terms and conditions of a binding contract, without lawful excuse.

Forum Selection Clause

A contractual provision that determines the location and jurisdiction where disputes arising under the contract will be resolved.