Which of the Following Features Distinguish Futures Markets from Forwards

question 14

Multiple Choice

Which of the following features distinguish futures markets from forwards markets?

• A) Standardization of contracts.
• B) The use of margin accounts to manage risk.
• C) Ease in reversing positions.
• D) All of the above.

Evaluate the risk associated with technology investments in capital budgeting.

Understand the impact of the time value of money on capital budgeting decisions.

Recognize the importance of return on investment considerations in capital budgeting.

Understand the concepts of soft and hard capital rationing and their effects.