The terms of futures contracts traded in the United States are
A)standardized as to amount or value, but not as to location or time of delivery.
B)standardized as to location or time of delivery, but not as to amount or value.
C)not standardized, but are determined entirely on the basis of the agreement entered into by the buyer and seller.
D)standardized as to amount or value and as to location or time of delivery.

Question

Quizplus · Accepted Answer

Futures contracts traded in the United States are standardized as to both amount or value and location or time of delivery. This means that contracts of the same commodity with the same quantity and delivery period are the same, regardless of who is trading them. This standardization allows for greater liquidity as buyers and sellers can easily find counterparties to trade with.

The Terms of Futures Contracts Traded in the United States