Which one of the following four features is NOT a typical characteristic of futures contracts?

Which one of the following four features is NOT a typical characteristic of futures contracts?
A . Fixed notional amount per contract
B . Fixed dates for delivery
C . Traded Over-the-counter only
D . Daily margin calls

View Answer

Answer: C

Explanation:

Futures contracts have several key characteristics that differentiate them from other types of financial instruments. The features include a fixed notional amount per contract, fixed dates for delivery, and daily margin calls to manage credit risk. Futures are standardized contracts traded on exchanges, not over-the-counter (OTC). OTC trading typically refers to securities or derivatives that are not listed on formal exchanges and are traded directly between parties, which is not a feature of futures contracts.