Which of the Following Observations Is True of Futures Contracts

question 6

Multiple Choice

Which of the following observations is true of futures contracts?

• A)They are contracted through a dealer,usually a bank.
• B)They are customized to meet contracting company's terms and needs.
• C)Future contracts typically do not require a margin deposit.
• D)Future contracts are traded on an exchange and acquired through an exchange broker.

---

Definitions:

Utmost Good Faith

A legal doctrine requiring parties in certain types of contracts, such as insurance, to act honestly and disclose all relevant information.

Transaction

The act of conducting business or exchanging goods, services, or financial assets between parties.

Power of Attorney

A legal document granting one individual the authority to act on behalf of another in legal or financial matters.