Question

What is the primary characteristic of a futures contract?

a.

It is a contract to buy or sell an underlying asset for a price specified at any time.

b.

It is a contract to buy or sell an underlying asset for a price specified today at a predetermined time.

c.

It is a non-standardized contract negotiated between the parties involved.

d.

It is a contract written by the parties themselves without the involvement of a clearing house.

Posted under IC 89 Management Accounting

Answer: (b).It is a contract to buy or sell an underlying asset for a price specified today at a predetermined time. Explanation:A futures contract is a contract to buy or sell the underlying asset for a price specified today at a pre-determined time.

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Q. What is the primary characteristic of a futures contract?
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