Which of the Following Features Is Shared by Futures Contracts

question 67

Multiple Choice

Which of the following features is shared by futures contracts and forward contracts?

• A) They are traded on organized exchanges.
• B) The commodities are standardized.
• C) The quantities traded are standardized.
• D) They mature (must be exercised or settled) at a specific date set in the contract.

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Definitions:

Market Basket

A set of goods and services that are typically consumed by a household or used to track the cost of living or inflation.

Perfect Substitutes

Goods or services that can be used in place of one another with no loss of utility by the consumer.

Perfect Complements

Goods that are always used together in fixed proportions, such that the utility derived from consuming one good increases the utility of consuming the other.

Orange Juice

A liquid extract of the orange tree fruit, consumed as a beverage for its taste and nutritional benefits, particularly its high vitamin C content.