What Is a Difference Between a Forward Contract and a Future

question 116

Multiple Choice

What is a difference between a forward contract and a future contract?

• A)The settlement price of a forward contract is fixed over the life of the contract but in a futures contract is marked to market daily.
• B)Forward contracts are normally arranged through an organized exchange, while most futures contracts are OTC contracts.
• C)Both are essentially the same, except for trading volumes which are higher for futures contracts.
• D)Both are essentially the same, except for the fact that the terms of a forward contract is set by the exchange, subject to the approval of the Commodity Futures Trading Commission (CFTC).
• E)Delivery of the underlying asset almost always occurs on a futures contract but almost never occurs on a forward contract.

Grasp the concept of relevant geographic market analysis in antitrust cases.

Identify statutory defenses and exceptions in antitrust violations.

Comprehend the scope and application of the Clayton Act and the Robinson-Patman Act.

Explain the role and implications of interlocking directorates under antitrust laws.

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Definitions:

Statistical Analysis

Involves the collection, examination, interpretation, and presentation of data to discover underlying patterns and trends, used for decision-making and predicting outcomes.

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The shared values, beliefs, attitudes, and practices that characterize an organization and guide its employees' behavior.

Transformational Leaders

Leaders who inspire and motivate followers to exceed their own interests for the good of the organization, often by fostering a vision and challenging the status quo.

Attraction-Selection-Attrition (ASA) Theory

A theory in organizational psychology that explains how organizations and their members are aligned, suggesting that organizations attract, select, and retain individuals with similar personalities and values.