Multiple Choice
Which of the following statements regarding futures contracts is FALSE?
A) Both the buyer and the seller can get out of the contract at any time by selling it to a third party at the current market price.
B) Futures prices are not prices that are paid today.Rather,they are prices agreed to today,to be paid in the future.
C) Futures contracts are traded anonymously on an exchange at a publicly observed market price and are generally very illiquid.
D) Traders are required to post collateral,called margin,when buying or selling commodities using futures contracts.
Correct Answer:
Verified
Correct Answer:
Verified
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