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

question 10

Multiple Choice

Comparing "forward" and "futures" exchange contracts, we can say that

• A)delivery of the underlying asset is seldom made in futures contracts.
• B)delivery of the underlying asset is usually made in forward contracts.
• C)delivery of the underlying asset is seldom made in either contract-they are typically cash settled at maturity.
• D)both a and b
• E)both a and c

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Definitions:

Systematic Bias

A consistent and pervasive error in judgment or procedure that leads to inaccurate conclusions or assessments, often resulting from a particular perspective or methodology.

Confirmation Bias

Confirmation bias is the tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Principle Of Falsifiability

The principle that a scientific theory must make predictions that are specific enough to expose the theory to the possibility of disconfirmation; that is, the theory must predict not only what will happen but also what will not happen.

Denialism

The refusal to accept well-established facts or evidence, often in the context of scientific or historical truths.