Question

Why were futures originally created? A. For market speculators to gain more leverage B. As part...

Why were futures originally created?

A. For market speculators to gain more leverage

B. As part of a fortune-telling cult

C. To hedge against uncertainty

D. As a counterpart for options contracts with expiration dates in the future

What is the Contract Size?

A. The total amount represented by one contract

B. The length of the technical specifications sheet each party signs

C. How far in the future the contract matures

D. How many of the contract is issued on a particular date and strike price

What makes futures different from any other security type you can trade on this simulator?

A. No cash is spent when you buy the contract

B. No other securities have contract sizes

C. Futures are the only way to buy Oil and Gold

D. You can't use limit orders on Futures

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Answer #1

C. To hedge against uncertainty

A. The total amount represented by one contract

A. No cash is spent when you buy the contract

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