The Key Difference Between a Forward and a Futures Contract

question 89

Multiple Choice

The key difference between a forward and a futures contract is:

• A) a forward contract is customized where a futures contract is not.
• B) a forward contract is bought and sold on organized exchanges.
• C) only the forward contracts have settlement dates.
• D) the amount of time involved.

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Definitions:

Macronutrients

Essential nutrients, including carbohydrates, fats, and proteins, required in large amounts for energy and support of bodily functions and growth.

Functions

Refers to the natural purposes or activities that an entity or organ performs or is intended to perform.

Energy

The capacity to do work, which can be physical or mental, and is essential for performing daily activities and maintaining health.

Healthy Diet

A diet that provides the body with essential nutrition: fluid, adequate essential amino acids from protein, essential fatty acids, vitamins, minerals, and adequate calories without excessive fat and sugar.