Which of the following characteristics apply to futures contracts?

I. Futures contracts are an important tool to control risk.
II. Futures contracts are highly risky and involve speculation.
III. Futures contracts specify both the quantity and the quality of the item.
IV. The buyer must hold the contract until maturity.

A) I and II only
B) II and IV only
C) I, II and III only
D) I, II, III and IV


Answer: C

Business

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