Which of the Following Statements Is a Key Difference Between

question 73

Multiple Choice

Which of the following statements is a key difference between forwards and futures?

• A) Futures contracts are more expensive than forward contracts.
• B) Forward contracts are offered only for foreign currencies.
• C) Futures contracts are always delivered.
• D) Forward contracts are not generally marked-to-market.

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Definitions:

Forward Integration

A business strategy where a company controls the distribution or the supply chain for its products.

Acquires Distributors

The process by which a company takes ownership of distribution channels or companies to enhance its supply chain effectiveness and market reach.

Stability Strategy

A business approach aimed at maintaining the current status quo in terms of growth rate, revenues, and operational scale, often used in predictable environments.

Maintain Current Operations

The ongoing efforts to keep a business's regular activities running smoothly and efficiently.