A Futures Contract Is a Specialised Form of a Forward

question 125

Multiple Choice

A futures contract is a specialised form of a forward contract distinguished by a(n)

• A)organised exchange.
• B)standardised contract with unlimited price changes and margin requirements.
• C)clearinghouse in each futures market.
• D)both A and C.

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Definitions:

Assignment

The act of transferring rights, duties, or responsibilities from one party to another, commonly seen in contracts or agreements.

Delegator

The party in a contract that assigns responsibility or tasks to another party, known as the delegatee.

Delegatee

A person or entity that is delegated authority or tasks by another, typically in a legal or formal context.

Incidental Beneficiaries

Third parties who may benefit from the performance of a contract but have no legal rights to enforce its terms.