One Difference Between a Futures Contract and a Forward Contract

question 40

Multiple Choice

One difference between a futures contract and a forward contract is that

• A)the price at which the currency will be delivered is specified in the forward contract, but a range of prices is stipulated in the futures contract.
• B)forward contracts are marked to market daily.
• C)futures contracts trade on exchanges while forward contracts trade in the over-the-counter market.
• D)the futures contract has more counterparty risk than the forward contract.

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Definitions:

Child Sexual Abuse

Involves an adult or older adolescent engaging in sexual activities with a child.

Disclose

To make known or reveal information that was previously private or secret.

Underestimates

Occurs when the value, amount, importance, or size of something is judged to be lower than it actually is.

Sexually Abused

Refers to being subjected to unwanted or forced sexual activity by another individual.