Which of the below does NOT involve a function of the clearinghouse?
A) One functions is to guarantee that the two parties to the transaction will perform.
B) When someone takes a position in the futures market, the clearinghouse takes the same position and agrees to satisfy the terms set forth in the contract.
C) The clearinghouse makes it simple for parties to a futures contract to unwind their positions prior to the settlement date.
D) The clearinghouse interposes itself as the buyer for every sale and the seller for every purchase.
Correct Answer:
Verified
Q10: Parties to a futures contract can _
Q11: One alternative in liquidating a futures contract
Q12: To create a particular futures contract, _
Q13: _ are standardized agreements as to the
Q14: _ are not intended to be settled
Q16: When a position is first taken in
Q17: In regards to a futures contract, which
Q18: One classification for financial futures is _.
A)
Q19: Which of the below statements is TRUE?
A)
Q20: As the value of a futures contract
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents