Which of the following is NOT a feature of futures contracts?
A) Futures contracts involve an obligation to buy or sell a specified amount
B) Trading of contracts occurs on an exchange
C) The contract price is settled at the end of the contract
D) Trading an opposite contract usually closes out the contract

Question

Quizplus · Accepted Answer

The contract price is actually settled daily during the term of the contract, not just at the end. This is known as marking to market, which involves adjusting the margin account of the traders based on the current market price of the underlying asset.

Which of the Following Is NOT a Feature of Futures