Series 3: Exercise

Exercise

Answer true or false.

1. 1. _____ Although exchanges have established standardized grades for different types of the same commodity, pricing of those different grades is not uniform.
2. 2. _____ Commodities futures contracts are always bought and sold in specific unit sizes.
3. 3. _____ Tick sizes are the same for each type of agricultural commodity.
4. 4. _____ The price variation during any given day cannot exceed certain maximum limits.
5. 5. _____ The seller has no duty to provide its clearinghouse with a stated intent to deliver commodities at the conclusion of a futures contract.
6. 6. _____ For a buyer to be certain that she will not be forced to accept delivery, she must sell her position before the last notice day of a futures contract.
7. 7. _____ The exchange will designate specific locations where specific commodities must be delivered.
8. 8. _____ The exchange determines the size, grades, and delivery months of a futures contract.
9. 9. _____ A holder of a short position futures contract is open to s