Which of the following are classified as commodities for the purpose of futures contracts?
I.Silver
II.Wheat
III.Weather derivatives
A)I, II
B)II, III
C)I, III
D)I, II, III

Question

Quizplus · Accepted Answer

Commodities for the purpose of futures contracts refer to physical goods that can be standardized and traded on an exchange. Silver and Wheat are physical goods and are commonly traded as commodities on futures exchanges. Weather derivatives, although financial instruments designed to hedge against weather-related risk, do not qualify as physical goods and therefore do not fall under the commodity category for futures contracts.

Which of the Following Are Classified as Commodities for the Purpose