1. Which of the following statements are true about futures contracts?

Check all that apply:

They are an agreement to buy or sell a specified amount of an asset at a specified date and for an agreed-upon price.

Both parties (buyer and seller) are protected from future price fluctuations of the asset.

They are daily marked to market.

They gives the buyer a right but not an obligation to buy a specified amount of an asset at a specified date and price.

They eliminate both price risk and credit (default) risk.

2.Which of the following statements are true about futures markets?

Check all that apply:

A trade in which a trader takes an opposite position to their currently open position is called a reversing trade.

If one of the parties fails to meet its obligations, the clearinghouse bears all the losses from the failure.

Open interest can be defined as a sum of the long and short positions.

The clearinghouse acts as an intermediary between the two parties of the contract.