Multiple Choice
The role of the clearinghouse is to:
A) Interpose itself as the buyer to every sale and the seller to every purchase.
B) Guarantee fulfillment of the futures contract on the settlement date.
C) Make it simple for parties to unwind their positions prior to the settlement date.
D) All of the above.
E) b and c only.
Correct Answer:

Verified
Correct Answer:
Verified
Q15: At the end of each trading day,
Q16: The futures price is:<br>A) The price paid
Q17: A daily price limit sets the minimum
Q18: A futures contract is a firm legal
Q19: Discuss the principles of hedging and explain
Q20: The major function of futures markets is
Q21: The difference between the cash price and
Q22: The price of a futures contract is
Q23: The seller of a futures contract will
Q24: Investors can use the cash or futures