Consider the following statements about a futures clearinghouse: Statement 1: A clearinghouse in futures contracts allows for

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Consider the following statements about a futures clearinghouse:

Statement 1: “A clearinghouse in futures contracts allows for the offsetting of contracts prior to delivery.”

Statement 2: “A clearinghouse in futures contracts collects initial margin (performance bonds) from both the long and short sides in the contract.”

Are the statements most likely correct or incorrect?

a. Both statements are correct.

b. Statement 1 is incorrect but Statement 2 is correct.

c. Statement 1 is correct but Statement 2 is incorrect.

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Fundamentals Of Investing

ISBN: 9781292153988

13th Global Edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

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Question Posted: Apr 04, 2024 05:27 AM

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Consider the following statements about a futures clearinghouse: Statement 1: A clearinghouse in futures contracts allows for

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