In futures markets,the terms of a futures contract,for instance the quality and quantity of the commodity and the delivery date,are specified by the:
A) buyers.
B) buyers and sellers.
C) futures exchange.
D) brokers and dealers.

Question

Quizplus · Accepted Answer

The terms of a futures contract are specified by the futures exchange, which sets the standard specifications for the underlying commodity, including quality and quantity, as well as the delivery date. This ensures that all market participants have access to the same information and reduces the potential for disputes. Buyers and sellers enter into contracts based on these standard specifications. Brokers and dealers facilitate the trading of futures contracts but do not have a role in specifying the terms of the contract.

In Futures Markets,the Terms of a Futures Contract,for Instance the Quality