Which of the following is true? choose one)
A) Both forward and futures contracts are traded on exchanges.
B) Forward contracts are traded on exchanges, but futures contracts are not.
C) Futures contracts are traded on exchanges, but forward contracts are not.
D) Neither futures contracts nor forward contracts are traded on exchanges.

Question

Quizplus · Accepted Answer

Futures contracts are standardized agreements traded on organized exchanges, which facilitate the buying and selling of financial instruments and commodities with future delivery dates. Forward contracts, on the other hand, are private agreements between two parties to buy or sell an asset at a specified future time at a price agreed upon today, and they are not traded on exchanges but rather are over-the-counter (OTC) transactions.

Which of the Following Is True? Choose One)