Futures Contracts Are Identical to Forward Contracts

question 22

True/False

Futures contracts are identical to forward contracts.

---

Definitions:

Exchange Rate

The price at which one currency can be exchanged for another in the foreign exchange market.

Raspberries

Edible fruits from plants in the genus Rubus, characterized by their aggregate structure of small drupelets.

Chocolate

A sweet food made from roasted and ground cacao seeds, typically eaten as confectionery or used to make beverages and to flavor or coat various foods.

Exchange Rate

The value of one currency for the purpose of conversion to another, determining how much of currency A is needed to purchase a unit of currency B.