A futures contract is a specialized form of a forward contract distinguished by a(n)

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A futures contract is a type of derivative contract that is traded on organized exchanges, which is distinct from a forward contract. Futures contracts are standardized with preset terms, including the quantity of the underlying asset, the delivery date, and the delivery location. Futures contracts are also subject to margin requirements, which are designed to protect both parties from potential losses. Clearinghouses are used to guarantee the performance of futures contracts, which reduces counterparty risk. Therefore, Choice letter D is the best option as it includes both of the distinguishing features of futures contracts.

A Futures Contract Is a Specialized Form of a Forward