Which of the Following Is NOT an Advantage of Futures

question 37

Multiple Choice

Which of the following is NOT an advantage of futures contracts?

• A) They are inexpensive compared to customized forward contracts.
• B) They trade on exchanges rather than over the counter.
• C) Features such as contract size and expiration date are standardized.
• D) The size and commodity can always be perfectly tailored to form a perfect hedge.

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Definitions:

Hind Feet

The rear feet or legs of an animal, often specialized for various functions such as jumping, running, or climbing.

Modern Cetaceans

Refers to the current species of whales, dolphins, and porpoises, highly adapted marine mammals with a fully aquatic lifestyle.

Fluke

Parasitic flatworms that belong to the Trematoda class, often causing diseases in livestock and humans.