Futures Contracts Are Similar to Forward Contracts in That They

question 79

Multiple Choice

Futures contracts are similar to forward contracts in that they both

• A) have volatile price movements and strong interest from buyers and sellers.
• B) give the holder the option to make a transaction in the future.
• C) have similar liquidity.
• D) have similar credit risk.
• E) trade on the same exchange.

---

Definitions:

Pap Test

A screening procedure for cervical cancer involving the collection of cells from the cervix to look for abnormalities that may indicate precancerous or cancerous conditions.

Pelvic Pain

A general term for pain felt in the lower part of the abdomen and pelvis, which can stem from a variety of causes including endometriosis and pelvic inflammatory disease.

Sexual Intercourse

The act of physical sexual activity between individuals, typically involving penetration of the vagina by the penis.

Prostate Cancer

A type of cancer that occurs in the prostate gland of men, often characterized by difficulty with urination, pelvic pain, and, in advanced stages, other more severe symptoms.