A traded futures contract is ________ as it specifies in detail the quantity and the quality of the underlying asset and where it is to be delivered.
A) Marketed
B) Normalized
C) Convertible
D) Redeemable
E) Standardized

Question

Quizplus · Accepted Answer

A traded futures contract is standardized as it has a set of predetermined terms and conditions. These terms include the quantity and quality of the underlying asset, the delivery location, and the expiration date. This allows for easy trading and hedging of the underlying asset without the need for negotiation or customization.

A Traded Futures Contract Is ________ as It Specifies in Detail