Futures Contracts Differ from Forward Contracts Because

question 108

Multiple Choice

Futures contracts differ from forward contracts because

• A) they trade on an organized exchange.
• B) they require marking to market on a daily basis.
• C) delivery can occur any day of the delivery month.
• D) all of the other answers are correct

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Definitions:

Maturity Value

The amount payable to an investor at the end of a fixed term investment, including the principal and any accrued interest.

Simple Interest Rate

The interest rate applied to the principal amount only, without compounding over a period.

Failed To Make

Refers to the inability or omission of completing a particular action, such as making a payment or fulfilling an obligation.

Equal Payments

Equal payments entail a financial agreement where payments or installments remain consistent over a specified period.