Which One of the Following Is a Difference Between a Forward

question 1

Multiple Choice

Which one of the following is a difference between a forward contract and a futures contract?

• A)Forward contracts are based on commodities while futures contracts are based on financial instruments.
• B)The price of the asset exchanged is determined when a forward contract is entered while the price is set on the exchange date for a futures contract.
• C)A forward contract is a formal agreement while a futures contract is an informal agreement.
• D)Futures contracts are managed through an organized exchange while forward contracts are not.
• E)There are no differences between forward and futures contracts.

---

Definitions:

Incomplete Protein

A type of protein that lacks one or more of the essential amino acids needed by the human body.

Amino Acids

Organic compounds that serve as the building blocks of proteins, necessary for numerous functions in living organisms.

Complete Sources

Typically refers to foods or nutrients that provide all essential components necessary for a healthy diet or biological function.

Accessory Gland

A gland that adds secretions to the fluids of another organ, like the seminal vesicles in males.