Which of the Following Is NOT a Feature of Forward

question 10

Multiple Choice

Which of the following is NOT a feature of forward contracts?

• A) Forward contracts are not standardised
• B) Forward contracts do not trade on organised exchanges
• C) The contract price may be settled at the end of the contract
• D) Forward contracts are closed out by trading an opposite contract

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Definitions:

Sample Mean

The average of a set of numerical values taken from a sample of a population.

Standard Deviation

A metric that represents the extent of variability or spread within a group of numbers, demonstrating how far apart the values are from their mean.

Sample Observations

Specific instances from a larger population used to gather data and draw conclusions.

Probability

A measure of the likelihood that an event will occur, quantified as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.