The Main Difference Between a Futures Contract and a Forward

question 61

True/False

The main difference between a futures contract and a forward contract is that with the former, buyers and sellers realize gains or losses on the settlement date, while the latter requires that gains or losses are realized daily.

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Definitions:

Leasing

A contractual agreement where one party, the lessor, allows another party, the lessee, to use an asset for a specified period in exchange for periodic payments.

Temporary Basis

A condition or status applied for a limited time period, often used in finance to describe temporary adjustments or measures.

Assets

Resources owned or controlled by a business or an individual that are expected to produce economic value or benefit in the future.

Leasing

Leasing is a financial agreement in which one party, the lessor, allows another party, the lessee, to use an asset for a specified period in exchange for periodic payments.