A forward contract
A)has more credit risk than a futures contract.
B)is more standardized than a futures contract.
C)is marked to market more frequently than a futures contract.
D)has a shorter time to delivery than a futures contract.

Question

Quizplus · Accepted Answer

Forward contracts are private agreements between two parties and are not standardized, leading to higher credit risk compared to futures contracts, which are standardized and traded on exchanges.

A Forward Contract