41) True or False: Commodity futures contracts are commonly used by producers and consumers of commodities to hedge against price fluctuations.
42) What is the margin requirement in futures trading?
a) The initial amount of money that must be deposited to open a futures position
b) The difference between the strike price and the market price of the underlying asset
c) The percentage of the notional amount that must be deposited to open a futures position
d) The expiration date of the futures contract
43) What is a forward contract?
a) A contract to buy or sell an asset at a specific price on a future date, similar to a futures contract
b) A contract to borrow money
c) A contract to invest in stocks
d) A contract to hedge against risk
44) True or False: Forward contracts are traded on organized exchanges, similar to futures contracts.
45) What is the main difference between forward contracts and futures contracts?
a) Forward contracts are standardized and traded on organized exchanges, while futures contracts are not
b) Forward contracts provide a way to borrow money, while futures contracts provide a way to invest in stocks
c) Forward contracts have higher leverage than futures contracts
d) Futures contracts have higher leverage than forward contracts
