Futures Contracts Differ from Forward Contracts in That ________

question 9

Multiple Choice

Futures contracts differ from forward contracts in that ________.

• A) futures contracts are standardized and performance of each party is guaranteed by the clearinghouse
• B) futures contracts are standardized and require a daily settling of any gains or losses
• C) futures contracts are standardized, performance of each party is guaranteed by a clearing house, and they require a daily settling of any gains or losses
• D) performance is guaranteed by a process known as marking to market

---

Definitions:

Selling Expenses

Costs incurred directly and indirectly in selling a product, including advertising, shipping, and sales staff salaries.

Merchandise

Goods that have been purchased for resale, typically in a retail environment.

Sales to Total Assets Ratio

A financial metric that measures how efficiently a company is using its assets to generate sales.

Total Assets

The total value of everything a company owns, both current and non-current, as recorded on the balance sheet.