S4 4.1 Flashcards
1
Q
What is a futures contract
A
Legally binding contract to buy/sell commodity on future specified date
2
Q
What parts of a futures contract are standardized?
A
1) Quantity
2) Quality
3) Delivery
3
Q
Are Margin requirements standardized for all contracts?
A
Nope
4
Q
Is the price on all future contracts standardized?
A
Nope
5
Q
Where must futures be traded?
A
ONLY in an exchange
6
Q
What is the role of the Clearing house in a futures contract?
A
Clearing house is the Guarantor - guarantee performance of the trade
7
Q
How is the value of a contract held current?
A
Mark to Market
8
Q
Are Financial and Commodity futures considered Securities?
A
Nope
