Comparing "forward" and "futures" exchange contracts,we can say that
A)delivery of the underlying asset is seldom made in futures contracts.
B)delivery of the underlying asset is usually made in forward contracts.
C)delivery of the underlying asset is seldom made in either contract-they are typically cash settled at maturity.
D)delivery of the underlying asset is seldom made in futures contracts and delivery of the underlying asset is usually made in forward contracts.

Question

Quizplus · Accepted Answer

Forward contracts are customized agreements between two counterparties to buy or sell an asset at a specified price and date in the future, where delivery of the underlying asset is usually made. Futures contracts, on the other hand, are standardized contracts traded on an exchange where the underlying asset is seldom delivered, and they are typically cash settled at maturity. Therefore, delivery of the underlying asset is usually made in forward contracts, while it is seldom made in futures contracts.

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