Futures contracts contrast with forward contracts by:
A)trading on an organized exchange.
B)marking to the market on a daily basis.
C)allowing the seller to deliver any day over the delivery month.
D)All of the above.
E)None of the above.

Question

Quizplus · Accepted Answer

Futures contracts trade on an organized exchange, mark to market on a daily basis, and have a delivery window over the delivery month. Forward contracts, on the other hand, are private agreements between two parties and are not traded on an exchange, do not mark to market, and have specific delivery terms agreed upon by the parties involved. Therefore, the correct answer is D.

Futures Contracts Contrast with Forward Contracts By