Which of the Following Is Not Correct Concerning Forward Contracts

question 98

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:

Sever

To cut off or divide property interests or legal relationships.

Enforce

means to compel observance of or compliance with a law, rule, or obligation.

Statutorily Barred

A legal limitation preventing certain actions, typically due to the passage of time according to statutory law.

Licensed

Having received official permission by a regulatory authority or body to engage in a professional activity or business.