A Forward Contract

question 4

Multiple Choice

A forward contract:

• A)has more credit risk than a futures contract.
• B)is more standardised than a futures contract.
• C)is marked to market more frequently than a futures contract.
• D)has a shorter time to delivery than a futures contract.

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Definitions:

Product

An item or service created through a process and offered in the market to satisfy a need or want.

Institutional

Pertains to the structured and established practices, organizations, and relationships, often within a particular sociopolitical context.

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