Futures contracts have many advantages over forward contracts except that ________.
A) futures positions are easier to trade
B) futures contracts are tailored to the specific needs of the investor
C) futures trading preserves the anonymity of the participants
D) counterparty credit risk is not a concern on futures

Question

Quizplus · Accepted Answer

Futures contracts are standardized contracts traded on exchanges, whereas forward contracts are customized contracts privately negotiated between two parties. However, futures contracts are not tailored to the specific needs of the investor, unlike forward contracts.

Futures Contracts Have Many Advantages Over Forward Contracts Except That