To answer this question, you need to understand how futures prices are determined.
Option A) Bids and offers - This option is correct. Futures prices are arrived at through the process of bidding and offering. Traders in the futures market place bids to buy contracts at a certain price, and other traders offer to sell contracts at a certain price. The intersection of these bids and offers determines the current futures price.
Option B) Officers and directors of the exchange - This option is incorrect. While the officers and directors of the exchange play a role in overseeing the trading process, they do not directly determine futures prices.
Option C) Written and sealed bids - This option is incorrect. While written and sealed bids may be used in some auction-style trading processes, they are not the primary method for determining futures prices.
Option D) The Board of Trade Clearing Corporation - This option is incorrect. The Board of Trade Clearing Corporation is responsible for clearing and settling futures transactions, but they do not determine the prices.
Option E) Both (2) and (3) - This option is incorrect because options (2) and (3) are not correct. The correct answer is option A, bids and offers.
The correct answer is option A. Futures prices are arrived at by bids and offers.