Which of the following statements is false?
A) Stock index futures contracts are cash settlement contracts.
B) There are margin requirements for futures contracts.
C) Futures positions are marked-to-market daily.
D) Margins for speculators are less than for hedgers.
E) None of the above.

Question

Quizplus · Accepted Answer

Margins for speculators are typically higher than for hedgers because speculators are considered to carry more risk compared to hedgers, who use futures contracts to mitigate risk in their underlying business.

Which of the Following Statements Is False