The future contracts can

a. Delivery at expiration

b. Do cash settlement at expiration

c. Offset before expiration

d. Default at expiration

e. All above are true

Suppose the maintenance margin is $5 and initial margin is $10. A long trader trades 10 contract in the market. when the Day 2's ending balance is $40/ what should the trader do?

a. Do nothing but keep trading in Day 3

b. Deposit extra $10

c. Deposit extra $60

d. deposit extra $100

e. None above

Which one of the following is the not correct about the comparison between futures and forwards?

a. Futures are standardized and forwards are not

b. Futures are traded on exchange and forward are OTC

c. Short in both forward and futures can determine the method of delivery

d. Futures market have clearing house and forward does not

e. Exiting the futures make is easier than forward