The Main Difference Between a Forward Contract and a Futures

question 272

True/False

The main difference between a forward contract and a futures contract is that the contract price changes hands at the initiation of the contract with forward contracts but at maturity with futures.

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Definitions:

Average

A statistical measure representing the central or typical value in a set of data, calculated as the sum of all values divided by the number of values.

Social Desirability Scales

Psychological tools used to assess the extent to which people's responses are influenced by the desire to be seen favorably by others.

Research

The organized examination and analysis of materials and sources to discover facts and form new conclusions.

Discriminant Validity

A measure of the degree to which a construct is truly distinct from other constructs by correlating minimally or not at all with measures from which it is theoretically supposed to differ.