Question: please answer all 3 18. Futures contracts are I. Standardized regarding the quantity of the underlying asset II. Standardized regarding quality of the underlying asset

please answer all 3

18. Futures contracts are

I. Standardized regarding the quantity of the underlying asset

II. Standardized regarding quality of the underlying asset

III. Marked to market only at settlement

a. I, II, and III

b. II and III

c. I and III

d. III only

e. I and II

19. Derivative securities are always a(n)

a. Form of speculating

b. Choice to buy or sell

c. Obligation to buy or sell

d. Moral hazard instrument

e. Zero sum game

20. The price of a derivative security is

a. the present value of future cash flows

b. the sum of future cash flows

c. always equal to zero

d. sometimes negative

e. the future value of future cash flows

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