Which of the following items is specified in a futures contract?I) The contract sizeII) The maximum acceptable price range during the life of the contractIII) The acceptable grade of the commodity on which the contract is heldIV) The market price at expirationV) The settlement price
A) I, II, and IV
B) I, III, and V
C) I and V
D) I, IV, and V
E) I, II, III, IV, and V

Question

Quizplus · Accepted Answer

Futures contracts specify the contract size (I), the acceptable grade of the commodity (III), and the settlement price (V), but not the maximum acceptable price range during the life of the contract (II) or the market price at expiration (IV).

Which of the Following Items Is Specified in a Futures