The price of a futures contract will generally vary significantly from that of a forward contract.

Question

Quizplus · Accepted Answer

Futures and forward contracts are both derivatives used for the purpose of hedging and speculation, and their prices are typically very similar because they are both based on the same underlying assets. The main differences between them are related to standardization, trading venues, and credit risk, not the pricing mechanism itself.

The Price of a Futures Contract Will Generally Vary Significantly