Which of the following is false regarding futures and forward contracts?
A) A futures contract is less likely to default since it is marked-to-market daily.
B) A futures contract is more liquid than a forward contract.
C) It is more difficult to reverse a forward contract.
D) Futures contracts are more flexible as to terms and conditions.
E) It is easier to find a counterparty for a futures contract.
Correct Answer:
Verified
Q4: Futures margin is defined as the deposit
Q54: A futures contract _ a zero sum
Q55: A futures contracts I) is standardized when
Q56: You have decided to close out your
Q57: The motivation of hedgers in the futures
Q58: All else the same, an increase in
Q61: All else the same, as the price
Q62: The biggest benefit of a futures exchange
Q63: You can withdraw funds from your futures
Q64: In a carrying charge market,
A) The basis
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents