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.

---

Definitions:

Sprain

is an injury involving the stretching or tearing of ligaments within a joint, typically caused by sudden twists or overextension.

Pectoral Girdle

The set of bones in the shoulder region that connects the upper limb to the axial skeleton, providing support and facilitating movement.

Clavicle

A bone located in the shoulder region, known as the collarbone, which serves as a strut between the shoulder blade and the sternum.

Humerus

The humerus is the long bone in the upper arm, extending from the shoulder to the elbow.