Forward Contracts Are Often Illiquid Because

question 3

Multiple Choice

Forward contracts are often illiquid because

• A)any capital gains on them are heavily taxed, making investors reluctant to sell them.
• B)government regulation has not provided for a secondary market in them.
• C)they generally contain terms specific to the particular buyer and seller.
• D)the brokerage fees involved in buying and selling them are very high.

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Definitions:

Bedridden

A condition in which a person is unable to leave their bed due to illness, disability, or frailty, requiring assistance for daily activities.

Isokinetic

Referring to muscular action performed with a constant speed of movement, often used in physical therapy and exercise equipment to assess and improve muscle strength.

Anaerobic

Relating to or involving muscular activity that does not require oxygen, often resulting in the production of lactic acid.

Aerobic

Exercise that requires the consumption of oxygen to fuel the body's muscular activity, such as running or swimming, improving cardiovascular health.