With regard to contractual size,
A)forward contracts are characterized by a standardized amount of the underlying asset.
B)futures contracts are tailor-made to the needs of the participant.
C)futures contracts are characterized by a standardized amount of the underlying asset.
D)none of the options

Question

Quizplus · Accepted Answer

Futures contracts are characterized by a standardized amount of the underlying asset. This means that every futures contract of a particular commodity or financial instrument will have the same size or quantity of units. This standardization allows for easier trading and liquidity in the market. In contrast, forward contracts are typically tailored to the specific needs of the participants and may vary in size and terms.

With Regard to Contractual Size