Which of the Following Statements Regarding Currency Futures Contracts and Forward

question 51

Multiple Choice

Which of the following statements regarding currency futures contracts and forward contracts is NOT true?

• A) A futures contract is a standardized amount per currency whereas the forward contact is for any size desired.
• B) A futures contract is for a fixed maturity whereas the forward contract is for any maturity you like up to one year.
• C) Futures contracts trade on organized exchanges whereas forwards take place between individuals and banks with other banks via telecom linkages.
• D) All of the above are true.

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Definitions:

Specific Rotation

A measure of the amount a substance rotates the plane of polarized light, specific to its molecular structure and concentration.

Dextrorotatory

Describes a substance that rotates the plane of polarized light to the right, or clockwise, as seen by an observer towards the light source.

Levorotatory

Describing a substance that rotates the plane of polarized light to the left or counterclockwise.

Racemic Mixture

A mixture containing equal amounts of left- and right-handed enantiomers of a chiral molecule, making it optically inactive.