Which of the following observations is true of futures contr

Which of the following observations is true of futures contracts? Multiple Choice They are customized to metcontracing companys ems and needs They are customized to meet contracting company\'s terms and needs They are contracted through a dealer, usually a bank Future contracts are traded on an exchange and acquired through an exchange broker

Solution

Correct Answer- Future contracts are traded on an exchange and acquired through an exchange broker.

Explanation

A future contract is a contract to buy or sell some quantities of security at a future date at a predetermined value. Future contracts are generally entered for speculation purposes and sometimes settled in cash. The quantity of Securities is generally standardized, and not custom. Future contract dealings do not require a bank but only with an account with a member of stock exchange.