Comparing "forward" and "futures" exchange contracts,we can say that:
A) they are both "marked-to-market" daily.
B) their major difference is in the way the underlying asset is priced for spot purchase or sale.
C) a futures contract is negotiated by open outcry between floor brokers or traders and is traded on unorganized exchanges, while forward contract is tailor-made by a domestic bank for its clients and is traded OTC.
D) futures contract is negotiated by open outcry between floor brokers or traders and is traded on organized exchanges, while forward contract is tailor-made by an international bank for its clients and is traded OTC.

Question

Quizplus · Accepted Answer

Futures contracts are standardized and traded on organized exchanges with open outcry or electronic trading systems, facilitating liquidity and price discovery. Forward contracts, in contrast, are customized agreements between two parties, typically traded over-the-counter (OTC), and not on exchanges, allowing for specific terms but lacking the standardization and market transparency of futures.

Comparing "Forward" and "Futures" Exchange Contracts,we Can Say That