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:

Fluid Gender

Represents a concept of gender identity that is not fixed and can change over time, reflecting a more dynamic understanding of gender beyond binary categories.

Identities

The aspects of a person's social and personal definition as influenced by their culture, experiences, and choices.

Intersexuality

A variation in sex characteristics including chromosomes, gonads, or genitals that do not fit typical binary notions of male or female bodies.

Observation

The active acquisition of information from a primary source, often involving measurement and recording of data from the environment.