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 future purchase or sale: futures settle daily and forwards settle at maturity.
C)a 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.
D)both b and c

Question

Quizplus · Accepted Answer

Choice B is correct as it correctly identifies the key difference between forwards and futures - the way in which the underlying asset is priced for future purchase or sale. Futures settle daily whereas forwards settle at maturity. 
Choice C is also correct as it accurately differentiates between the trading of futures and forwards. Futures are traded on organized exchanges through open outcry between floor brokers or traders, while forwards are tailor-made contracts by international banks for their clients and traded over-the-counter (OTC). 
Choice A is incorrect as it only applies to the marking-to-market of futures contracts and not forwards contracts, which may or may not be marked-to-market daily depending on the agreement between the parties involved.

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