Futures Contracts Differ from Forward Contracts in That

question 62

Multiple Choice

Futures contracts differ from forward contracts in that

• A) they can be used by financial managers to reduce risk.
• B) they provide their holder with an opportunity to buy or sell an asset at some future time if the asset's value has changed in a manner favorable to the futures contract holder.
• C) they sustain a small change in value when there is a small change in the price of the underlying commodity.
• D) they are for standardized commodities in standardized quantities and have standardized expiration dates.

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Definitions:

Financial Information

Data related to financial transactions, including details about revenues, expenses, assets, and liabilities, used for analysis and decision-making.