Forward Contracts Contain

question 70

Multiple Choice

Forward contracts contain:

• A) a commitment to the owner, and are standardized.
• B) a commitment to the owner, and can be tailored to the owner's desire.
• C) a right but not a commitment to the owner, and can be tailored to the owner's desire.
• D) a right but not a commitment to the owner, and are standardized.

Understand the process of closing out a futures position before the delivery date.

Comprehend the differences between futures and forward contracts, including their trading venues.

Understand the concept of open interest and its significance in futures markets.

Identify the standardization of futures contracts and its difference from forward contracts.

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