Suppose that the futures contract has a range of possible delivery dates in the delivery month. For example, potential delivery dates for the corn futures contracts traded at the CME group can be any business day prior to the 15th of the delivery month. For this type of contract, who determines the specific day when delivery will take place?

The first delivery day for a futures contract is…

Why is marking a futures account to market an effective procedure for reducing the risk that the futures trader will default?

How does the clearinghouse at a futures market minimize its own counterparty risk? This question may have more than one correct answer. You must select all that are correct in order to earn full credit.

What is your maximum loss on a long futures position?

An over-the-counter market is a market in which…

Which of the following terms refers to the risk that the other party to a futures or forward contract will fail to carry out his or her end of the deal? This question may have more than one correct answer. You must select all that are correct in order to earn full credit.

In the United States, trading in futures began in…

How does a local differ from a futures commission merchant (FCM) at a futures exchange?

How does a market maker system improve trading at a futures exchange? More than one answer may be correct. For full credit, you must correctly identify all of the correct answers.