Forward Contracts Are Much Easier to Unwind Than Futures Contracts

question 30

True/False

Forward contracts are much easier to unwind than futures contracts due to the standardization of the contracts.

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Definitions:

Legal Implications

Refers to the possible consequences or effects that actions or decisions might have under the law.

Admissions

The process or act of allowing someone to enter a place, institution, or organization, often based on certain criteria or requirements.

Guilt

A feeling of responsibility or remorse for some offense, crime, wrong, whether real or imagined.

Negative Announcement

A communication that delivers bad news, unfavorable decisions, or adverse information to an audience.