Which of the Following Is NOT True About Forward and Futures

question 5

Multiple Choice

Which of the following is NOT true about forward and futures contracts?

• A) Forward contracts are more liquid than futures contracts
• B) The futures contracts are traded on exchanges while forward contracts are traded in the over-the-counter market
• C) In theory forward prices and futures prices are equal when there is no uncertainty about future interest rates
• D) Taxes and transaction costs can lead to forward and futures prices being different

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Definitions:

Mutation

A change in the DNA sequence, which can result in new traits or variations within a population and contribute to the evolution of species.

Inherited

Traits or properties passed down from parents to their offspring through genes.

Transgenic Organisms

Organisms that have had genes from another species inserted into their genetic code, resulting in new traits or characteristics.

Ring Spot Virus

A plant pathogenic virus causing ring spot symptoms on the leaves of affected plants, leading to reduced growth and yield.