Which of the following is NOT a type of risk associated with futures contracts?

Question

Which of the following is  NOT a type of risk associated with futures contracts?

Quizplus · Accepted Answer

Postpayment risk is not a recognized type of risk associated with futures contracts. Futures contracts typically involve basis risk, liquidity risk, and market risk. Basis risk involves the risk that the price of the futures contract and the underlying asset diverge. Liquidity risk is the risk of not being able to quickly buy or sell a contract without significantly affecting its price. Market risk involves the risk of losses due to factors that affect the entire market. Postpayment risk, which might imply a risk associated with payments after a transaction has been completed, is not a standard term in the context of futures trading.

Which of the Following Is NOT a Type of Risk