Which of the following does the most to reduce default risk for futures contracts?

Related MCQs

• The main disadvantage of hedging with futures contracts as compared to options on futures contractsis that futures
• The main advantage of using options on futures contractsrather than the futures contracts themselvesis that
• Futures contracts are more successful than interest rate forward contracts because they :
• Using futures contracts to transfer price risk is called:
• The main reason to buy an option on a futures contract rather than the futures contract is
• Futures markets have grown rapidly because futures
• Standardized futures contracts exist for all of the following underlying assets except:
• The total number of futures/option contracts outstanding at the close of the previous day’s trading is
• Options on futures contracts are referred to as
• When the maturity matches but the size of the futures does not match, the hedge can be