Which of the following is not true an options contract quizlet. standardization of listed options contracts B.
- Which of the following is not true an options contract quizlet. An American option can be exercised at any time during its life. Both calls and puts increase in value B. spot markets c Study with Quizlet and memorize flashcards containing terms like Financial derivatives include futures; forward contracts; options, A contract that requires the investor to buy securities on a future date is called a long contract, A contract that requires the investor to sell securities on a future date is called a short contract and more. S. , 2) When a put option is exercised, the: A) buyer of the option sells the underlying asset and receives the option Study with Quizlet and memorize flashcards containing terms like Which of the following is true? A) Both forward and futures contracts are traded on exchanges B) Forward contracts are traded on exchanges, but futures contracts are not C) Futures contracts are traded on exchanges, but forward contracts are not D) Neither futures contracts nor forward contracts are traded on exchanges, 2) A one Study with Quizlet and memorize flashcards containing terms like Which statement regarding assessments is NOT accurate?, Item 14 of this contract addresses tax-free exchanges. -An American option can be exercised at any time during its life. Which of the following is not true regarding forward contracts and futures contracts? A. they are listed on exchanges and trade C. True 8. In exchange for this right, the optionee usually pays consideration to the optionor, which keeps the offer open and exclusive Study with Quizlet and memorize flashcards containing terms like Which of the following is NOT a difference between a currency futures contract and a forward contract? A. C) Forward contracts are marked to market daily. strike + premium, Regarding options positions, which of the following statements is TRUE? A. Call options are the security that allows the holder to purchase an underlying stock, and the put option is the provision that allows Study with Quizlet and memorize flashcards containing terms like A six-month American call option contract is an agreement where, Which of the following is NOT true? a. Forward contracts are similar, but they are private agreements between two parties, not traded on exchanges. (True or False) Study with Quizlet and memorize flashcards containing terms like An option provides a right to the writer and an obligation to the buyer. An American option can be exercised at any time during its life C. trading of listed options contracts C. 50 call D) Feb. the contract is simply a deferred-delivery sale 3. When a CBOE call option on IBM is exercised, IBM issues more stock. 4) Which of the following statements is true of an offer that was not communicated? The offer cannot be accepted by the offeree if not communicated. D) Courts of law usually do not enforce the promises made as part of contracts. Forward contracts usually have one specified delivery date; futures contract often have a range of Which of the following is the best explanation of an option? - A legal procedure or action brought by either the buyer or seller to enforce the terms of the contract. D. Open contract Answer: A, Bilateral contract. zero NPV b. and more. Study with Quizlet and memorize flashcards containing terms like Which of the following statements is TRUE regarding stock index options?, When do options trades settle?, Which of the following option positions obligates the investor to sell shares if exercised against? and more. Both calls and puts decrease in value C. , The price paid for an option is long call An equity option call buyer has the right to purchase stock and is therefor bullish All of the following terms and phrases apply to the buy side of the options contract except Study with Quizlet and memorize flashcards containing terms like Which of the following pairs of options contracts is not in the money if the strike price is 40 and the market price is 30? A) Long call and long put B) Long call and short call C) Short call and short put D) Short call and long put, the MAXIMUM potential LOSS for an investor SHORT a PUT option is A) the premium received. now obligated to either buy or sell the underlying stock at Study with Quizlet and memorize flashcards containing terms like 2) Which of the following does not describe a futures contract? A) Traded competitively on organized exchanges. Which of the following is NOT true? A. the strike price D. A call option allows the holder to buy an asset, while a put option allows the holder to sell an asset. Study with Quizlet and memorize flashcards containing terms like What are options?, Option vocab: Exercising the option: Strike price, or exercise price: Expiration date: American and European options:, Calls and Puts and more. d. False a. All of the following are true concerning an option contract EXCEPT: (A) the optionee can enforce the sale. upon exercise, the seller must pay the buyer the "in the money" amount. All XYZ puts with the same strike price and expiration date are included in the same series of optional contracts Which of the following statements regarding currency futures contracts and forward contracts is NOT true? A. Both forward and futures contracts are traded on exchanges. assignment of exercises of listed options contracts, The Options Clearing Corporation is responsible for all of the Study with Quizlet and memorize flashcards containing terms like Which of the following option contracts is in the money if ABC stock is currently trading at $45 per share? A) Mar. strike-premium C. An options contract is a contractual agreement between two parties. Study with Quizlet and memorize flashcards containing terms like An offer may be terminated by: (A) lapse of agreed period of time (B) acceptance of offer (C) counteroffer (D) All of the above, An option is: (A) a unilateral contract (B) binding only on one party (C) accepted by performance (D) All of the above, A real estate licensee may legally prepare which of the following contracts? (A) A Study with Quizlet and memorize flashcards containing terms like 1. Study with Quizlet and memorize flashcards containing terms like Which of the following is true of contracts? A) Contracts can be classified as either voluntary or involuntary. is based on the value of an underlying security. Calls increase in value while puts decrease in value D. , List four things Study with Quizlet and memorize flashcards containing terms like An option. He has an option contract attached to his lease, with an option to purchase that can be Study with Quizlet and memorize flashcards containing terms like An investor writes an uncovered RST May 25 put for a premium of 4. At what market price will the investor break even?, Which of the following option positions obligates the investor to sell shares if exercised? A) Long a call B) Long a put C) Short a call D) Short a put, Which of the following is TRUE for the writers (sellers) of Study with Quizlet and memorize flashcards containing terms like Which of the following statements regarding currency futures contracts and forward contracts is NOT true?, A foreign currency ________ gives the purchaser the right, not the obligation, to buy a given amount of foreign exchange at a fixed price per unit for a specified period. It is a bit like ordering a product from a store and agreeing to pick it up later. Study with Quizlet and memorize flashcards containing terms like The Options Clearing Corporation is responsible for all of the following EXCEPT: A standardization of listed options contracts B trading of listed options contracts C issuance of listed options contracts D assignment of exercises of listed options contracts, An opening trade in a call option contract takes place on the American Options are derivative securities issued by a corporation that provide the holder the right but not the obligation to purchase or sell a predetermined number of shares at a specified price on or before a specific date. futures b. Cash markets are also known as a. the premium B. D) Standardized deliver dates. A contract in which each party promises to do something is known as a? A. Study with Quizlet and memorize flashcards containing terms like Common types of derivative contracts include all the following except a. , Define an option-to-buy. - A clause that grants either party the right to Study with Quizlet and memorize flashcards containing terms like A customer who has written an option contract receives an assignment notice. Dividend options D. Similar to other derivatives, options contract derive their value from an underlying asset. Study with Quizlet and memorize flashcards containing terms like An option contract, or option,, In an option contract, Prior to the optionee (buyer) exercising the option to buy, an option contract is a unilateral contract and more. Study with Quizlet and memorize flashcards containing terms like A one-year forward contract is an agreement where:, Which of the following is NOT true?, A one-year call option on a stock with a strike price of $30 costs $3; a one-year put option on the stock with a strike price of $30 costs $4. upon exercise, settlement occurs next business day B. Study with Quizlet and memorize flashcards containing terms like At Expiration for those who trade call options, which of the following is true? Study with Quizlet and memorize flashcards containing terms like Define an option-to-buy. Which of the following statements about options contracts is not true? A. All of the following statements regarding exercise of index options are true EXCEPT: A. It is part of a class of options contracts that includes all puts on XYZ stocks. Futures contracts are exchange-traded, whereas forward contracts are OTC-traded b. A call option will always be exercised at maturity if the underlying asset price is greater than the Study with Quizlet and memorize flashcards containing terms like Which of the following is NOT true about the normal forward price? Study with Quizlet and memorize flashcards containing terms like Which of the following statements is true? a) a futures contract does not involve obligations to buy or sell an asset b) a futures contract has standardized terms c) a futures contract always requires delivery of an asset d) unlike forwards, futures are not traded on an exchange, Options positions can either create rights or Study with Quizlet and memorize flashcards containing terms like The Options Clearing Corporation is responsible for all of the following EXCEPT: A. C. , The seller in a futures contract is said to have a a. Futures contracts nearly always last longer than forward contracts B. none of the above, 2. Let's recall that index option contracts are standardized by the Options Clearing Corporation (OCC) and are listed on exchanges, allowing them to be traded. standardization of listed options contracts B. B) A futures contract is for a fixed maturity whereas the forward contract is for any maturity you like up to one year. stocks b. A listing contract c. This notice, A call option reaches its expiration date and goes unexercised. Study with Quizlet and memorize flashcards containing terms like Which of the following statements is true regarding the distinction between futures contracts and forwards contracts? a. B) the amount the writer of a call pays the seller Study with Quizlet and memorize flashcards containing terms like A _______ contract is a vehicle for buying or selling a stated amount of foreign exchange at a stated price per unit at a specified time in the future that is brokered over-the-counter. It ensures that the exchange rate for a future transaction will lie between two values B. , The ticker symbol is used to represent the company's _____. A. each party must be willing to lock in the ultimate price for delivery of the commodity 2. exercise style - European or American d. Select whether the following statements regarding the nature of options is true or false: a)An option is a derivative instrument that gives the holder of the option the right, but not the obligation, to complete a transaction with the underlying asset at a specified date or within a specified period. , An expressed contract:, Charles made an oral offer to sell his lawn mower to Daniel for $20 if Daniel would agree not to operate it before 10 AM on weekends. Study with Quizlet and memorize flashcards containing terms like Common and preferred stock are examples of what basic type of financial asset?, True or false: The return from owning a stock comes purely from the capital gain or loss that occurs when a stock's price changes. Which of the following is an example of a unilateral contract? (a) Purchase and sale contract (b) Contract for deed (c) Open listing contract (d) Oral contract, What is consideration?, what is the best way to terminate a contract? and more. spot markets c. Study with Quizlet and memorize flashcards containing terms like Which of the following for call option contracts is TRUE?, Which of the following securities is the underlying asset used to create an ADR?, An investor who is long MES equity put options is and more. All of the following statements about this contract are true EXCEPT A. C) Breakeven of a call option may be found by adding its strike price to the market value of the Study with Quizlet and memorize flashcards containing terms like One, In writing and signed by the optionor, Pay the option fee. B The contract does not allow settlement in cash or securities of equivalent value. they are standardized contracts issued by the OCC B. the "in the money" amount is based upon the closing index value on the day of exercise D. C) The terms of a valid contract become private law between the parties. over quadrillion dollars e. True B. issuance of listed options contracts D. A buyer agency contract b. The breakeven stock price above Study with Quizlet and memorize flashcards containing terms like Which of the following is not true of a futures contract? a. options c. An example of an options contract could be a call option on a stock, which gives the holder the right to buy shares at a specified price before the expiration date. they typically have a higher notional value that stock option contract, A customer has a An investor establishes the following position: Long 1 XYZ 50 put at 3. The terms of option contracts are standardized by the Options Clearing Corporation (OCC), which allows options to be traded easily on an exchange such as the Chicago Board Options Exchange (CBOE). Study with Quizlet and memorize flashcards containing terms like Which of the following is not a derivatives securities Forward Contract Stock Option Futures Contract Inflation-indexed Bond Swap Contract, Which of the following definitions is not correct? long position in forward contract - agreement to buy an underlying asset in the future for a predetermined price short position in forward D) standardized contracts. Guaranteed Study with Quizlet and memorize flashcards containing terms like ______ is an offer to purchase a specific piece of real estate that does not obligate the offeror to buy it. -Investors must pay an upfront price (the option premium) for an option contract. Bilateral contract B. Which of the following is true A. When a CBOE call option on IBM is exercised, IBM issues more stock B. 1) Which of the following is not true? a. Guaranteed insurability option C. This customer is A. Nonforfeiture options B. the size of the contract c. now obligated to short the stock at the current market value B. B) All contracts are legally enforceable. 4. Call buyers have the right to purchase the underlying, and put writers may be obligated to purchase underlying B. True B Study with Quizlet and memorize flashcards containing terms like True or False: The options contract does not specify the strike price. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. A call option will always be exercised at maturity if the underlying asset price is greater than the An individual is purchasing a permanent life insurance policy with a face value of $25,000. over a trillion dollars but less than a hundred trillion d. B) Traded by bank dealers via a network of telephones and computerized dealing systems. , List four things an option does to the advantage of the optionee. , Which of the following Study with Quizlet and memorize flashcards containing terms like Contract, Elements of a contract, Types of Contract and more. - A document used in closing a real estate transaction. option to exercise the contract d. Who does the contract state is responsible for additional costs related to a tax-free exchange?, How could a tenant benefit from having a right of first opportunity? and more. The second option is true. long position b. Money must change hands prior to the delivery date of the commodity 4. , 100 shares of stock), standardized expiration date and time (11:59 PM Eastern Standard Time on the 3rd Friday of the month), and standardized strike price intervals (generally 5 point intervals). short D. B) The gain or loss is equal to but of the opposite sign of the buyer of a put option. When one party promises to do something if the other party performs a certain act, but the other party does not promise to perform it, it is referred to as a ? Apr 24, 2025 · Futures contracts refer to a promise to buy or sell something in the future, and they are traded on organized marketplaces called exchanges. True b. gives a trader the right to buy or sell the underlying security. Which of the following is NOT standardized for listed option contracts? Exchange traded option contracts have standardized contract sizes (e. One key feature is that they are exercised; when an index option is exercised, the writer pays the owner a cash difference based on the index's A two-party contract that conveys a right to the buyer and an obligation to the seller. swaps, The most active forward markets are those for a. the party who must notify the Options Clearing Corporation (OCC) that they intend to exercise the contrace C. In exchange for the right of option, the optionee pays the optionor valuable consideration. C. less than a trillion dollars b. , The functions of the OCC include all of the following except A) adjusting contracts for stock splits. Unilateral contract D. g. All else equal, forward prices are higher than future prices. Daniel accepted the offer. Only one side has an obligation; the other side has a right to exercise. Holders of options contracts can have limited loss but potentially unlimited gains. foreign exchange, A fairly priced forward contract should have a. A sales contract, Hank leases 150 acres from Sara and Jesse. -A European option can only be exercised on the maturity date. C) regulating trading on options exchange trading floors. These contracts typically represent a broader market index rather than individual stocks. E) decreases. Futures contracts trade on organized exchanges whereas forwards take place between individuals and banks with other banks via telecom linkages. set price to be bought or sold in the future. assignment of exercises of listed options contracts, An opening trade in a call option contract takes place Study with Quizlet and memorize flashcards containing terms like 1) You will earn a profit as the owner of a call option if the price of the underlying asset: A) remains constant or decreases. D) Forward contract buyers and sellers do not know who the counterparty is. Which of the following is NOT true A. B) remains constant or increases. Buyers and sellers do not have to rely on a Study with Quizlet and memorize flashcards containing terms like The maximum gain on a short call is A. B) All in-the-money options are profitable. Options contracts can provide substantial leverage. The market value of the derivatives contracts worldwide totals a. , 6) Comparing "forward" and "futures" exchange Study with Quizlet and memorize flashcards containing terms like All of the following statements about index option contracts are true EXCEPT: A. When an exchange-traded call option on IBM stock is exercised, IBM issues more stock. Similar to futures contracts, margin requirements are normally imposed on option traders. they cannot be exercised - they can only be closed by trading D. A covenant of good faith and fair dealing b. The investor holds the obligation to sell the stock. B. Forward contracts have reduced counterparty risk and lower information costs. Study with Quizlet and memorize flashcards containing terms like Writing calls can generate potentially unlimited losses, Most forward market contracts are settled before delivery, Futures contracts eliminate risk to all participants and more. False, A put option is a contract that gives the holder the right to sell a specified number of shares of common stock at a set price for a given period of time. Study with Quizlet and memorize flashcards containing terms like All of the following are true of contracts EXCEPT that they _____. D) All of the above are true. For instance, a call option's value rises when the underlying asset's price rises above the strike price or the predetermined price the call option holder can purchase the underlying asset. , Who is at risk of assignment? and more. It requires a forward contract as well as two options D. Although commissions for options are fixed per transaction, multiple contracts may be involved in a transaction, thus lowering the Study with Quizlet and memorize flashcards containing terms like Which of the following is NOT true about a range forward contract? A. Study with Quizlet and memorize flashcards containing terms like The O. Conversely, put options value increases when the underlying asset's price declines Study with Quizlet and memorize flashcards containing terms like When interest rates increase with all else remaining the same, which of the following is true? A. setting the premium of listed options contracts C. Study with Quizlet and memorize flashcards containing terms like Which of the following positions or actions would cover a client who has shorted a call? A) Buying a put with a higher strike price B) A long stock position C) A short stock position D) Buying a call that expires sooner, The strike price is A) the cost per share of the contract. Study with Quizlet and memorize flashcards containing terms like Which of the following investments would not be considered exchange-traded derivatives? A) Futures B) Options C) Warrants D) Forwards, News reports indicate that the wheat crop scheduled to be harvested in three months will be much larger than normal. 55 put C) Jan. An option contract d. It can be used to hedge either a future inflow or a Study with Quizlet and memorize flashcards containing terms like Which of the following is NOT an instrument used by U. This means and more. E) Futures contracts are only traded over the counter. , How does an option benefit commercial property acquisition? and more. Contract settlement procedure- cash or delivery, All of the following statements about the value of a call option at expiration are true, except that the: a Study with Quizlet and memorize flashcards containing terms like An offer may be terminated by:, An option is:, A real estate licensee may legally prepare which of the following contracts? and more. Call buyers have the right to Generally, an option contract is a specific kind of contract wherein one party, called the optionor, gives another, called the optionee, the sole right, but not the obligation, to purchase or sell a given asset within a predetermined time frame at a predetermined price. specified quantity of a financial asset to be bought or sold in the future. Implied contract C. 45 call, Regarding a public offering and a private placement, all of the following are true except A) both are subject to the registration requirements found in the Study with Quizlet and memorize flashcards containing terms like 1) Which of the following is true? A) Both forward and futures contracts are traded on exchanges B) Forward contracts are traded on exchanges, but futures contracts are not C) Futures contracts are traded on exchanges, but forward contracts are not D) Neither futures contracts nor forward contracts are traded on exchanges, Which Study with Quizlet and memorize flashcards containing terms like One characteristic of a derivative is that, A forward contract, A futures contract differs from a forward contract in that and more. the underlying stock's price b. (D) the optionor cannot require specific performance A (C) Only the optionor must sign 6 Jun 16, 2023 · So, the correct answer is that options contracts do indeed have expiration dates, making E the false statement. 5) A contract requires an offer and an acceptance. False, An American option may be exercised only at maturity. derivative Study with Quizlet and memorize flashcards containing terms like option contract,, What makes an option contract different from a regular sales contract?, option fee and more. is responsible for all the following EXCEPT: A Standardization oflisted optionscontracts B Issuance of listed options contracts C Trading of listed options contracts D Assignment ofexercisesof listed options contracts, If an opening trade of an option contract occurs on the Chicago Board Options Exchange, the issuer of B. An option is a contract that gives the holder the right, but not the obligation, to buy or sell an asset at a predetermined price on or before a specified date. Which of the following instruments are contracts but are not securities a. C) The maximum gain is the amount of the premium. Commodity futures take a long or short position in the commodity market, while financial futures take a long or short position on a financial asset. , As an option moves further out-of-the-money, delta Study with Quizlet and memorize flashcards containing terms like When XYZ is trading at 40, an XYZ 30 put sold at 3 would be, The holder of an in-the-money option contract gives a do not exercise instruction (notice) to your broker-dealer. C) remains constant. obliges the holder to exercise it at the expiration date. A covenant of clean action and faithful service c. , An option, An option and more. Study with Quizlet and memorize flashcards containing terms like 1. Which of the following options should be included in the policy? A. c. - Forward contracts are traded on exchanges, but futures contracts are not. All contracts include which of the following implied terms? a. The futures Study with Quizlet and memorize flashcards containing terms like is an enforceable contract in which a potential seller, the optionor, grants a potential buyer, the optionee, the right to purchase a property before a stated time for a stated price and terms. Study with Quizlet and memorize flashcards containing terms like Which of the following is not true regarding options? Options are traded on exchanges, never over-the-counter. speculative markets b. B) Futures contracts require an initial margin requirement be paid. An call option will always be exercised at maturity if the underlying asset price is greater than the strike price D. A Call option will always be exercised at maturity if the underlying asset price is greater than the strike price. Study with Quizlet and memorize flashcards containing terms like Regarding options positions, which of the following statements is true? A) Call writers have the right to sell the underlying, and put writers are obligated to sell the underlying. a. swaps d. B) clearing transactions in listed options. 7. agricultural commodities d. Futures contracts are standardized; forward contracts are not C. Which of the following is NOT true for the writer of a put option? A) The maximum loss is limited to the strike price of the underlying asset less the premium. This agreement is: and more. , 2 Study with Quizlet and memorize flashcards containing terms like A one‐year forward contract is an agreement where, Which of the following is NOT true A. 10) Which of the following statements regarding currency futures contracts and forward contracts is NOT true? A) A futures contract is a standardized amount per currency whereas the forward contact is for any size desired. The two types of options are call and put. B) take a Study with Quizlet and memorize flashcards containing terms like A put option is a contract that gives the holder the right to sell a specified number of shares of common stock at a set price for a given period of time, Options are not an actual security, The option writer determines when/if an option is exercised and more. Forward contracts are traded on exchanges, but futures contracts are not. financial assets c. b. D) increases. Study with Quizlet and memorize flashcards containing terms like Which of the following statements about listed options is true? A)The options disclosure document (ODD) must be delivered to only those who purchase out-of-the-money calls or puts. Neither futures contracts nor forward contracts are traded on exchanges. To hedge, a wheat farmer would most likely A) sell wheat stock short. a and b e. Options contracts don't have expiration dates. in the hundreds of trillion dollars c. B The policy remains active for some time after the policyholder Which of the following is NOT true A. The counterparty to the futures participant is unknown with the clearinghouse stepping into each transaction, whereas the forward contract participants are in direct contact setting the forward specifications. Which of the following is true? A) Forward contracts have no default risk. positive Study with Quizlet and memorize flashcards containing terms like The market value of the derivatives contracts worldwide totals a. asset-backed securities d. Delivery or final cash settlement usually takes place with forward contracts; the same is not true of futures contracts D. . Suppose that a trader buys two call options and one put option. It can be structured so that it costs nothing to set up C. We need to identify the incorrect statement. Study with Quizlet and memorize flashcards containing terms like A one-year forward contract is an agreement where, Which of the following is NOT true? A. 40 put B) Jan. Which of the following is NOT true about call and put options? -The price of a call option increases as the strike price increases. the maximum risk for the writer of the index contract is the loss of the premium Study with Quizlet and memorize flashcards containing terms like Option Valuation Which of the following is NOT an input required by the Black-Scholes option pricing model? The current stock price The risk-free interest rate The expected volatility of the stock The expected return on the stock, Which of the following statements is FALSE? A put option gives the owner the right to sell the asset Study with Quizlet and memorize flashcards containing terms like Which of the following is not specified by a stock option contract? a. Study with Quizlet and memorize flashcards containing terms like All of the following are Nonforfeiture options EXCEPT A Extended term B Reduced paid-up C Interest only D Cash surrender, Which is TRUE about the cash surrender nonforfeiture option? A After the cash surrender, the insured is covered for a grace period of 1 month. standardized agreement b. , Which of the following are specified in an options contract? Select all that apply. C) Standardized amount of the underlying asset. Futures contracts are traded on exchanges, but forward contracts are not b. - An agreement granting exclusive right to buy, sell, or lease property at a given price within a stated period of time. b and c e Study with Quizlet and memorize flashcards containing terms like 1. An implied contract differs from an express contract in that the conduct of the parties, rather than their words, creates and defines the terms of the contract. E. A put option will always be exercised at maturity if the strike price is greater than the underlying Study with Quizlet and memorize flashcards containing terms like The Options Clearing Corporation is responsible for all of the following EXCEPT: A. none of the above, Cash markets are also known as a. based MNCs to cover their foreign currency positions, A forward rate for a currency is said to exhibit a discount if, Which of the following is NOT true regarding futures contracts and more. Which of the following is not a reason for investors to participate in options? and more. (B) the option money is usually forfeited if the purchase is not completed (C) the optionee must sign the contract. , An initial performance bond must be deposited into a collateral account to establish a(n) _______ position. - Futures contracts are traded on exchanges, but forward contracts are not. precious metals b. Forward contracts are created from baskets of future contracts Study with Quizlet and memorize flashcards containing terms like Which of the following is true about options? Which of the following options has payoffs that are the average (rather than the final) price of the underlying asset (during some portion of the life of the option) Study with Quizlet and memorize flashcards containing terms like Another name for securities which give the holder the right to buy or sell shares of stock under specified conditions is:, One important reason for the existence of derivatives is that they:, 3. Puts increase in value while calls decrease in value, When the time to maturity increases with Study with Quizlet and memorize flashcards containing terms like Which of the following statements is NOT true about a futures contract 1. Study with Quizlet and memorize flashcards containing terms like Which of the following is true? - Both forward and futures contracts are traded on exchanges. Futures contracts are traded on exchanges, but forward contracts are not. fxiy krb yusgsn hbxfwx jvlf mieto tvudyur jkqxzhx wdmei aauc