Describe the Differences Between Futures and Forward Contracts

question 35

Essay

Describe the differences between futures and forward contracts.

---

Definitions:

Written Demand

A formal request or claim, typically documented in writing, that seeks performance or action from another party.

Lawsuit

A legal action brought before a court by an individual or group against another party.

ADR

Alternative Dispute Resolution, a range of processes such as mediation and arbitration used to resolve disputes outside of court.

Neutral Third Party

An impartial individual or entity involved in a negotiation or conflict resolution who does not favor any side involved in the dispute.