Which of the following best describes the risks associated with futures contracts?
A) The possibility of making an unexpected profit on a futures contract
B) The probability of making a loss, or a fall in the value of a futures contract
C) The variability of changing prices and costs associated with buying and selling futures contracts
D) The possibility of loss associated with the default by the holder of the opposite position in the contract

Question

Quizplus · Accepted Answer

Futures contracts are subject to price volatility, which can lead to significant changes in value, affecting both potential profits and losses.

Which of the Following Best Describes the Risks Associated with Futures