An Advantage of a Forward Contract Over a Futures Contract

question 109

Multiple Choice

An advantage of a forward contract over a futures contract is that

• A) The terms of the contract are flexible
• B) It is more liquid
• C) It trades through a centralized market exchange
• D) It is easier to unwind due to contract homogeneity
• E) None of the above

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Definitions:

Lateral Decision Making

A decision-making process that involves collaboration among team members or departments at the same organizational level, rather than following a top-down approach.

Team Culture

The shared values, practices, and norms that shape the behavior and interaction of team members within an organization.

Creative Teamwork

The collaborative effort of a group to generate innovative solutions and ideas through collective creativity.

Leader-Member Exchange

A theory describing the dyadic relationship and exchange between leaders and followers, influencing organizational outcomes.