The Advantage of Forward Contracts Over Future Contracts Is That

question 73

Multiple Choice

The advantage of forward contracts over future contracts is that they

• A)are standardized.
• B)have lower default risk.
• C)are more liquid.
• D)are more flexible

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Definitions:

Compounded Monthly

Interest calculation method where interest is added to the principal balance monthly, leading to interest on interest.

Monthly Investments

Regular investments made on a monthly basis, often as part of a disciplined strategy to accumulate wealth over time.

Investment

The allocation of resources with the expectation of generating an income or profit, such as stocks, bonds, or real estate.

Compounded Quarterly

Interest calculation method where the interest is added to the principal four times a year.