Final answer:
Futures contracts are standardized, including the settlement dates, which is true. These dates are key components that facilitate trading by providing uniformity and predictability in the markets where these contracts are exchanged.
Step-by-step explanation:
Futures contracts are standardized in many ways, including the quantities of the underlying asset and settlement dates. The statement that futures contracts are standardized in terms of settlement dates is true. These standard specifications help to facilitate trading on futures exchanges by making the contracts more uniform and, therefore, more easily exchangeable and comparable. Settlement dates refer to the specific dates on which the futures contract must be settled. There are typically multiple standard settlement dates available throughout the year, and traders choose which contract they want to trade based on these dates.
An example of how this works would be in commodities trading, where a futures contract for wheat might be available for settlement in the months of March, May, July, September, and December. These specific dates promote liquidity in the market by allowing traders to know exactly when the contracts will settle, reducing the risk of unexpected delays or obligations.