The advantage of using a forward rate agreement FRA over a futures contract is:
A) FRAs are highly standardised.
B) FRAs have only an initial margin and no ongoing maintenance margin.
C) the terms and conditions of a FRA can be negotiated.
D) FRAs have standardised maturities.

Question

Quizplus · Accepted Answer

The advantage of using a FRA over a futures contract is that the terms and conditions of a FRA can be negotiated. This means that the parties involved can tailor the agreement to their specific needs, whereas futures contracts are more standardised with less room for negotiation.

The Advantage of Using a Forward Rate Agreement FRA Over