Futures contracts are designed to share the price risk and not actually transfer the underlying asset.

Name: Futures contracts are designed to share the price risk and not actually transfer the underlying asset.
Brand: Quizplus
Rating: 4.8 (35 reviews)

Question

Quizplus · Accepted Answer

Futures contracts are primarily used for hedging or speculating on the price movement of the underlying asset, allowing parties to lock in prices without the necessity of physically transferring the asset itself.

Futures Contracts Are Designed to Share the Price Risk and Not