Comparing "Forward" and "Futures" Exchange Contracts,we Can Say That

question 27

Multiple Choice

Comparing "forward" and "futures" exchange contracts,we can say that:

• A) they are both "marked-to-market" daily.
• B) their major difference is in the way the underlying asset is priced for spot purchase or sale.
• C) a futures contract is negotiated by open outcry between floor brokers or traders and is traded on unorganized exchanges, while forward contract is tailor-made by a domestic bank for its clients and is traded OTC.
• D) futures contract is negotiated by open outcry between floor brokers or traders and is traded on organized exchanges, while forward contract is tailor-made by an international bank for its clients and is traded OTC.

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Definitions:

Longitudinal Fissure

The profound fissure dividing the brain into two distinct hemispheres.

Central Fissure

Also known as the Rolandic fissure, it is a significant groove on the surface of the brain separating the frontal and parietal lobes.

Frontal Lobes

The part of the brain located at the front of each cerebral hemisphere, responsible for higher cognitive functions like decision making, problem solving, and controlling behavior.

Parietal Lobes

Regions of the brain located behind the frontal lobes, important for integrating sensory information and in the processing of spatial orientation.