The futures price
A)is established each year by act of Congress.
B)is established each month by the Chairman of the Chicago Board of Trade.
C)is specified in each futures contract.
D)is set by supply and demand in the futures market.

Question

Quizplus · Accepted Answer

The futures price is not set by anyone in authority, but is rather established by the forces of supply and demand in the futures market. Traders, investors, and other market participants buy and sell futures contracts based on their expectations for the future price of the underlying asset, whether it be a commodity, a financial instrument, or some other type of asset. These market participants collectively determine the price through their buying and selling activity.

The Futures Price