Futures contracts __________ traded on an organized exchange, and forward contracts __________ traded on an organized exchange.
A) are not; are
B) are; are
C) are not; are not
D) are; are not
E) are; may or may not be

Question

Quizplus · Accepted Answer

Futures contracts are traded on an organized exchange, providing standardization and market liquidity. Forward contracts, in contrast, are private agreements between two parties and are not traded on an organized exchange, offering more customization but less liquidity and standardization.

Futures Contracts __________ Traded on an Organized Exchange, and Forward