Which of the following statements about the futures market is most accurate()
A: Speculators trade to reduce some preexisting risk exposure.
B: If a trader’s account falls below the maintenance margin level they have three days to bring it back up to the maintenance margin level.
C: Open interest is the number of futures contracts for which delivery is currently obligated.
A: Speculators trade to reduce some preexisting risk exposure.
B: If a trader’s account falls below the maintenance margin level they have three days to bring it back up to the maintenance margin level.
C: Open interest is the number of futures contracts for which delivery is currently obligated.
举一反三
- Which of the following statements is most accurate() A: Forward contracts require that both parties to the transaction have a high degree of creditworthiness. B: Forward contracts are marked to market daily. C: Futures contracts have more default risk than forward contracts.
- Which of the following statements is least accurate() A: Futures contracts are easier to offset than forward contracts. B: Forward contracts are generally more liquid than futures contracts. C: Forward contracts are easier to tailor to specific needs than futures contracts.
- Which of the following statements regarding a futures trade of a deliverable contract is FALSE() A: The long is obligated to purchase the asset. B: The short is obligated to deliver the asset. C: Equilibrium futures price is known only at the end of the trading day.
- Which of the following is most likely to be a feature common to both forward and futures contracts? A: Daily marking to market of contracts B: Standardization of the contract’s terms and conditions C: Their use for hedging or speculation
- Which of the following is a reason to use the swaps market rather than the futures market To :() A: reduce the credit risk involved with the contract. B: increase the liquidity of the contract. C: maintain the firm's privacy.