The major difference between valuing futures versus forward contracts stems from the fact that future contracts are
A) Traded on exchange.
B) Backed by a clearinghouse.
C) Marked-to-market daily.
D) Less risky.
E) Relatively inflexible.

Question

Quizplus · Accepted Answer

Futures contracts are marked-to-market daily, meaning gains and losses are settled each day, which is a key difference from forward contracts.

The Major Difference Between Valuing Futures Versus Forward Contracts Stems