Which of the following statements is true?
A) In a futures contract the buyer and seller agree on a price at time 0 and the bonds are delivered by the seller to the buyer 'at that time'.
B) In a futures contract the buyer and seller agree on a price at time 0 and the bonds are delivered by the seller at a future point in time, e.g. after three months.
C) In a futures contract the buyer and seller enter into a contract at time 0, the contract is marked-to-market on a daily basis, and the buyer pays the futures price quoted at expiry.
D) None of the listed options are correct.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is true?
A) In a futures contract the buyer and seller agree on a price at time 0 and the bonds are delivered by the seller to the buyer 'at that time'.
B) In a futures contract the buyer and seller agree on a price at time 0 and the bonds are delivered by the seller at a future point in time, e.g. after three months.
C) In a futures contract the buyer and seller enter into a contract at time 0, the contract is marked-to-market on a daily basis, and the buyer pays the futures price quoted at expiry.
D) None of the listed options are correct.

Which of the Following Statements Is True