Derivatives【Reading 62】Sample
For a futures trade: A)
| a single price is determined by supply and demand. |
| B)
| the buyer pays the bid price; the seller receives the ask price. |
| C)
| the seller receives the bid price; the buyer pays the ask price. |
|
There is no bid/ask spread in futures trades; the price for the trade is determined on the floor of the exchange and is the single price the long will pay the short for the asset at the termination of the contract. |