All of the statements below are true of futures contracts except that futures contracts
A)result in predictable cash flows.
B)eliminate downside risk and upside potential.
C)eliminate downside risk while allowing for upside potential.
D)result in predictable gross profits.

Question

Quizplus · Accepted Answer

Futures contracts lock in prices, eliminating both downside risk and upside potential, not just downside risk.

All of the Statements Below Are True of Futures Contracts