The terms of futures contracts traded in the United States are
A) standardized as to amount or value, but not as to settlement dates.
B) standardized as to settlement dates, but not as to amount or value.
C) not standardized, but are determined entirely on the basis of the agreement entered into by the buyer and seller.
D) standardized as to amount or value and as to settlement dates.

Question

Quizplus · Accepted Answer

Futures contracts traded in the United States are standardized as to both the amount or value and the settlement dates. This means that the contracts specify the quantity and quality of the underlying asset, as well as the date on which the contract will expire and the settlement will take place. Standardization helps to ensure market liquidity and transparency, as well as making it easier for buyers and sellers to establish fair prices.

The Terms of Futures Contracts Traded in the United States