Forward Contracts Are the Same as Futures Contracts Only They

question 13

True/False

Forward contracts are the same as futures contracts only they cannot be traded and are not necessarily standardised.

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Definitions:

Ratification

The act of formally approving an agreement or treaty, making it officially valid.

Principal

The party that an agent’s authority can bind or act on behalf of.

Agency

The fiduciary relationship that arises when one person consents to have another act on his behalf and subject to his control and the other consents to do so.

Power of Attorney

A legal document that grants one individual (the agent) the authority to act on behalf of another (the principal) in legal or financial matters.