For a Futures Contract on an Asset to Be Successful

question 20

Multiple Choice

For a futures contract on an asset to be successful compared to the alternative of forward contracts, which of the following features would help?

• A) The most appropriate standardized grade for the contract is difficult to identify.
• B) Counterparty credit risk is high.
• C) Bid-ask spreads in the spot market are high.
• D) The underlying spot asset is difficult to short.

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Definitions:

Environmental Sociology

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