Futures Contracts Are Similar to Forward Contracts in That They

question 72

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) They both have similar liquidity.
• D) They both have similar credit risk.
• E) None of the above.

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Definitions:

Dependence

A state where an individual relies on a substance or behavior for normal functioning or feels unable to quit it.

Similarity

The degree to which two things resemble or match each other.

Personality

The amalgamation of traits or attributes that create a person's unique personality.

Late Adulthood

A stage of human development that typically covers individuals aged 65 and older, marked by both physical and cognitive changes.