Which of the Following Statements Is Most CORRECT

question 11

Multiple Choice

Which of the following statements is most CORRECT?

• A) One advantage of forward contracts is that they are default free.
• B) Futures contracts generally trade on an organized exchange and are marked to market daily.
• C) Goods are never delivered under forward contracts,but are almost always delivered under futures contracts.
• D) Forward contracts are generally standardized instruments,whereas futures contracts are generally tailor-made for the 2 parties of the contract.
• E) Essentially there are no differences between forward and futures contracts,except that forward contracts are used only for financial assets while futures contracts are used only for commodities.

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