Which of the Following Is Not Correct Concerning Forward Contracts

question 70

Multiple Choice

Which of the following is not correct concerning forward contracts? Forward contracts:

• A)Are not standardized
• B)Do not set the price until the end of the contract
• C)Are not traded on organized exchanges
• D)Are not marked to market daily

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Definitions:

Punitive Damages

Compensation awarded to a plaintiff that goes beyond what is necessary to compensate for losses and is intended to punish the defendant.

Remedies

Legal solutions or actions awarded by courts to address a wrong or enforce a right.

Code

A systematic collection of laws or regulations, or a set of principles or standards in computing or communication.

Incidental Damages

Compensation for additional financial losses that occur indirectly from a breach of contract or wrongful act.