Register now or log in to join your professional community.
a) Daily cash settlements b) Price limits c) both A and B d) None of the above. You can't limit your losses in futures contracts
I beleive option B is the correct answer, since the contracts in the futures market are a result of competitive price discovery. Prices are quoted as they would be in the cash market: in dollars and cents or per unit (gold ounces, bushels, barrels, index points, percentages and so on).
Daily cash reconciliations and price limits both help to reduce losses in the futures correct answer C
c) both A and B
