Forward contracts ________ traded on an organized exchange, and futures contracts ________ traded on an organized exchange.
A) are; are
B) are; are not
C) are not; are
D) are not; are not

Question

Quizplus · Accepted Answer

Forward contracts are customized agreements between two parties and are typically not traded on an organized exchange. On the other hand, futures contracts are standardized agreements and are traded on a centralized and regulated exchange.

Forward Contracts ________ Traded on an Organized Exchange, and Futures