Futures Are Essentially Standardized Forward Contracts

question 38

True/False

Futures are essentially standardized forward contracts.

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Definitions:

Annuity Due

A series of equal payments made at the beginning of consecutive periods over a fixed length of time.

Interest Rate

The cost incurred by a borrower from a lender for the use of assets, represented as a proportion of the principal.

Payments

Transactions or transfers of money from one party to another, often in exchange for goods or services.

Annuity

A series of payments of a fixed amount for a specified number of periods.