Question 686 future
Which of the following statements about futures is NOT correct?
(a) Buyers of futures are required to pay an initial margin at the start.
(b) Futures are a zero-sum game in the sense that the winner gains at the expense of the loser.
(c) Buyers of futures have to pay the futures price at the start.
(d) Buyers of futures do not care about the credit risk of the original future seller since the contract is novated by the exchange.
(e) Speculators who sell futures hope that the underlying asset price falls.
Copyright © 2014 Keith Woodward