Which of the following items is not specified in a futures contract?I) The contract sizeII) The maximum acceptable price range during the life of the contractIII) The acceptable grade of the commodity on which the contract is heldIV) The market price at expirationV) The settlement price
A) II and IV
B) I, III, and V
C) I and V
D) I, IV, and V
E) I, II, III, IV, and V

Question

Quizplus · Accepted Answer

The maximum acceptable price range during the life of the contract (II) and the market price at expiration (IV) are not specified in a futures contract. Futures contracts specify the contract size (I), the acceptable grade of the commodity (III), and have a mechanism for determining the settlement price (V), but they do not fix the price range during the contract's life or the market price at expiration.

Which of the Following Items Is Not Specified in a Futures