Question 1 A trader in the futures market does not need to hold his or her position open until the delivery month. Suppose that Selina has an open short position in five CBOT July corn futures contracts. What must she do to close out her position prior to July? A. None of the other answers is correct. B. Enter a short position in five CBOT July wheat futures contracts C. Enter a short position in five CBOT July corm futures contracts. D. Enter a long position in five CBOT July corn futures contracts. E. Enter a long position in five CBOT May corn futures contracts. Question 2 A. were first traded in the U.S. in the 1990s, a period of major financial innovation. B. none of the other answers is correct. C. are not used with currencies. D. do not reduce the risk of price fluctuations. E. do not eliminate the risk of default among the parties involved in the trade. Question 3 An important difference between a futures contract and a forward contract is.. A. Futures trade on a futures exchange, while a forward contract does not. B. Futures are standardized contracts whose terms are defined by the futures exchange. whereas terms of a forward contract are defined by the parties to the contract. C. Taking an offsetting position in the futures markets cancels the trader's obligations, while taking an offsetting position in a forward contract does not. D. Default risk is minimal in the futures markets, while default risk (at least in principle is high in the OTC market for forward contracts E. All of the above