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Which of the Following Is NOT True

Question 10

Multiple Choice

Which of the following is NOT true?


A) Forward rate agreements (FRAs) and interest rate futures are contracts that bet on future movements of the spot rate of interest.
B) FRAs trade over the counter.
C) Interest rate futures trade on an organized exchange.
D) FRAs and interest rate futures are identical contracts in all respects,except that one trades over the counter and the other trades on an exchange.
E) FRAs have no intermediate cash flows before maturity,and interest rate futures have daily settlement cash flows.

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