Which of the following features describe the forward market for foreign exchange?
I.Tailored size contracts
II.Small amount contracts
III.Tailored maturities
IV.Large amount contracts
A) II only
B) IV only
C) I, II, and III
D) I, III, and IV

Question

Quizplus · Accepted Answer

Tailored size contracts (I) and tailored maturities (III) are both features of the forward market. Additionally, the forward market typically deals with large amount contracts (IV) as opposed to small amount contracts (II). Therefore, the correct options are I, III, and IV, making choice D the correct answer.

Which of the Following Features Describe the Forward Market for Foreign