A Forward Contract

question 121

Multiple Choice

A forward contract

• A)has more credit risk than a futures contract.
• B)is more standardized than a futures contract.
• C)is marked to market more frequently than a futures contract.
• D)has a shorter time to delivery than a futures contract.
• E)is less risky than a futures contract.

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Definitions:

Mode

The value that appears most frequently in a data set.

Different Numbers

Quantities that are not the same or identical, emphasizing distinct values or entities in a set or sequence.

"Average" Growth Rate

A metric that quantifies the rate of expansion or contraction in a variable's value over a specified period, typically expressed as a percentage.

Positively Skewed

Describes a distribution of data where the tail on the right side of the frequency distribution is longer than the left side, indicating that most values are clustered around the left.