Solved

Which of the Following Is True with Respect to the Difference

Question 134

Multiple Choice

Which of the following is true with respect to the difference between futures and forward contracts?


A) Futures contracts are marked-to-market daily,while forward contracts are not
B) Buyers and sellers deal directly with each other on forward contracts but go through organized exchanges in futures contracts
C) Futures contracts are standardized,forward contracts generally are not
D) Forward contracts are generally more risky because no exchange guarantees the settlement of each contract if one or the other party to the contract defaults
E) All of the options describe differences between futures and forward contracts

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents