An Advantage of a Forward Contract Over a Futures Contract

question 109

Multiple Choice

An advantage of a forward contract over a futures contract is that

• A) The terms of the contract are flexible
• B) It is more liquid
• C) It trades through a centralized market exchange
• D) It is easier to unwind due to contract homogeneity
• E) None of the above

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Definitions:

Displaced Point Pattern

A spatial configuration in which points (representing locations or events) are distributed in an irregular or non-uniform manner, leading to variations in density.

Diffused Point Pattern

A distribution pattern where elements or observations are spread out over an area without a clear concentration in any single location.

Back Channel Cue

Non-verbal signals used during communication to indicate comprehension, agreement, or interest without interrupting the speaker.

Body Buffer Zone

The personal space around an individual that they prefer not to be invaded by others, varying in size depending on social and cultural norms.