Futures hedging produces different results from those produced by forward hedging for the following reasons except:
A) Futures contracts are standardised with respect to size.
B) Futures contracts are traded on organised exchanges.
C) Futures contracts are standardised with respect to the settlement date.
D) Futures contracts involve marking to market.

Question

Quizplus · Accepted Answer

Futures and forward contracts both can be traded on organized exchanges. The distinction between futures and forwards primarily lies in their standardization, settlement dates, and the marking to market process, not in the platform where they are traded.

Futures Hedging Produces Different Results from Those Produced by Forward