Which of the Following Characteristics Apply to Futures Contracts

question 40

Multiple Choice

Which of the following characteristics apply to futures contracts?
I. Futures contracts are an important tool to control risk.
II. Futures contracts are highly risky and involve speculation.
III. Futures contracts specify both the quantity and the quality of the item.
IV. The buyer must hold the contract until maturity.

• A) I and II only
• B) II and IV only
• C) I, II and III only
• D) I, II, III and IV

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Definitions:

Physical Relaxation

A state of being free from tension and anxiety in the body, often achieved through techniques like deep breathing, meditation, or yoga.

Jargon

Specialized language used by a particular group or profession that may be difficult for others to understand.

Verbal Communication

The use of spoken words to convey messages, ideas, or information between individuals.

Pent-up Emotions

Emotions that have been suppressed or not expressed, often leading to increased stress or emotional outbursts when released.