Question

What is the essential characteristic of futures contracts regarding their terms?

a.

The terms of futures contracts can be changed during the lifetime of the contract.

b.

The terms of futures contracts are determined by the clearing house.

c.

The terms of futures contracts cannot be changed during the lifetime of the contract.

d.

The terms of futures contracts are customized for each trade.

Answer: (c).The terms of futures contracts cannot be changed during the lifetime of the contract. Explanation:Futures contracts are transferrable legal agreements, and their terms cannot be changed during the lifetime of the contract.

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Q. What is the essential characteristic of futures contracts regarding their terms?

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