A futures contract represents a promise of deliver or acceptance of a commodity in a future month. A characteristic of futures contracts is that
A) this exchange occurs for 98% of all contracts
B) fewer than 2% actually result in delivery
C) they cannot be created or destroyed
D) they have no effect on the risk of the parties to the contracts
Correct Answer:
Verified
Q9: Someone who routinely maintains a futures position
Q10: A major function of the clearing process
Q11: The newspaper price for a particular futures
Q12: The prices of some futures contracts are
Q13: The three main paradigms in futures pricing
Q14: According to John Maynard Keynes, futures prices
Q15: The difference between a futures price and
Q17: The Clearing Corporation
A) establishes the margin requirements
Q18: Hedgers in the futures market
A) often seek
Q19: Futures contracts are marked to market, which
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