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

question 71

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 future purchase or sale: futures settle daily and forwards settle at maturity.
• C)a 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.
• D)both b and c

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Relating to a parliamentary system of government or its procedures.

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The act of keeping things organized and in proper arrangement to ensure smooth operations or processes.

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