Futures:
A) require people to be present in Cushing, Oklahoma, on settlement day.
B) are standardized contracts to buy or sell specified quantities at a set price at a specific time in the future.
C) are not tradable.
D) specify a commodity price and a quantity to be determined later.

Question

Quizplus · Accepted Answer

Futures are standardized contracts that involve buying or selling a specific quantity of a commodity at a specific price on a pre-determined date in the future. They can be traded on exchanges and do not require physical presence on the settlement day. Options (which are different from Futures) give the holder the right to buy or sell, but not the obligation to do so, at a specific price and date in the future. Choice A and D do not accurately describe the nature of futures contracts.