A Futures Contract Are Enhanced Forward Contract with Some Important

question 59

Essay

A futures contract are enhanced forward contract with some important differences.Explain.
A futures contract is a forward contract that has been standardized and which is sold through an organized exchange.Forward contracts generally are private agreements between two parties and as a result are customized and therefore difficult to sell.

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Definitions:

Termination Phase

The final stage in a process, therapy, or relationship, where closure and resolution of goals are sought.

Termination Phase

The final stage in a process, therapy, or sequence where activities are concluded, and the relationship between the involved parties is officially ended.

Future Problems

Possible issues or challenges that have not yet occurred but are anticipated to arise.

Express Feelings

The ability to openly and effectively convey one's emotions to others through words, actions, and artistic expression.