Which of the following is true?
A) Most forward contracts between firms and banks are for speculative purposes.
B) Most future contracts represent a conservative approach by firms to hedge foreign trade.
C) The forward contracts offered by banks have maturities for only four possible dates in the future.
D) none of the above

Question

Quizplus · Accepted Answer

Forward contracts are typically used for hedging rather than speculation, futures contracts are often used for speculation, and forward contracts can have flexible maturity dates, not limited to four specific dates.

Which of the Following Is True