Which of the Following Is NOT a Difference Between a Currency

question 37

Multiple Choice

Which of the following is NOT a difference between a currency futures contract and a forward contract?

• A) The futures contract is marked to market daily, whereas the forward contract is only due to be settled at maturity.
• B) The counterparty to the futures participant is unknown with the clearinghouse stepping into each transaction, whereas the forward contract participants are in direct contact setting the forward specifications.
• C) A single sales commission covers both the purchase and sale of a futures contract, whereas there is no specific sales commission with a forward contract because banks earn a profit through the bid-ask spread.
• D) All of the above are true.

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Definitions:

Supraorbital Ridges

Bony ridges located above the eye sockets of many vertebrates, which can serve as sites for muscle attachment and protection for the eyes.

Supraorbital Ridge

The prominent bony ridge above the eye socket; ape skulls have prominent supraorbital ridges.

Paranthropus Boisei

An extinct hominin species known for its robust cranial features, large molars, and diet primarily consisting of hard plant material.

Prehensile Tail

Tail adapted for grasping.