Forward Contracts Are Much Easier to Unwind Than Futures Contracts

question 30

True/False

Forward contracts are much easier to unwind than futures contracts due to the standardization of the contracts.

---

Definitions:

U.S. Dollar Value

The worth of a good, service, or financial security denominated in terms of the United States dollar.

Norwegian Kroners

The official currency of Norway, symbolized as NOK.

U.S. Dollars

The official currency of the United States, which is used as a standard monetary unit for various international transactions.

Foreign Trade Zone

A designated location within a country where goods can be imported, stored, and processed without being subject to import duties until they enter the domestic market.