Forward Contracts

question 48

Multiple Choice

Forward contracts

• A) can never be arranged in the over-the-counter market.
• B) are less standardized than futures contracts.
• C) cannot be customized to meet the hedging needs of the buyer.
• D) are never marked-to-market.
• E) have a high liquidity risk related to immediate cash access to pay for possible losses.

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Definitions:

Major Nutrient

Essential substances required in large amounts for healthy growth, metabolism, and overall bodily function; includes carbohydrates, proteins, and fats.

Glucose

A fundamental sugar, essential for powering living creatures and forming part of various carbohydrates.

Plant Polysaccharide

Complex carbohydrates found in plants, consisting of long chains of monosaccharide units, and are important for energy storage and structural components.

Cellulose

A complex carbohydrate that forms the primary structural component of plant cell walls and is incapable of being digested by humans.