Differences Between Forward and Futures Contracts Include

question 93

Multiple Choice

Differences between forward and futures contracts include:

• A) while forward contracts are non-standardized contracts, futures contract are defined on standardization
• B) the forward contracts are not exchange-traded while futures are exchange-traded derivatives
• C) unlike forward contracts, the contracts traded on the futures exchange are always standardized with a clear stipulation of the quantity and quality of the underlying assets or financial instrument negotiated at a specified price to be delivered at a specified future date
• D) all of the above

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