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

---

Definitions:

Ego

A part of the psyche that mediates between the conscious, the unconscious, and the reality, often related to self-esteem and identity.

Ethnicity-Related Messages

Communications or signals that pertain to, or are shaped by, one's ethnic group, often influencing identity and social perceptions.

Cultural Heritage

The legacy of physical artifacts and intangible attributes of a group or society inherited from past generations, including customs, practices, places, objects, artistic expressions, and values.

African-American

Pertaining to people in the United States who have ancestral roots in Africa, particularly those whose ancestors were brought to America through the transatlantic slave trade.