Answer (D) is correct . A distinguishing feature of futures contracts is that their prices are marked to market every day at the close of the day. Thus, the market price is posted at the close of business each day. A mark-to-market provision minimizes a futures contract’s chance of default because profits and losses on the contracts must be received or paid each day through a clearinghouse.
Answer (A) is incorrect because Both a forward contract and a futures contract are executory.
Answer (B) is incorrect because A futures contract may be speculative.
Answer (C) is incorrect because A futures contract is for delivery during a given month.
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