The Advantage of Forward Contracts Over Futures Contracts Is That

question 84

Multiple Choice

The advantage of forward contracts over futures contracts is that forward contracts

• A) are standardized.
• B) have lower default risk.
• C) are more liquid.
• D) are none of the above.

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Definitions:

Incentive Pay

Incentive Pay is a form of compensation where employees receive additional pay or bonuses based on their performance, productivity, or meeting certain targets.

Null Hypothesis

A hypothesis that assumes no statistical significance or effect in the population from which a sample is drawn.

Probability

A numeric scale from 0 to 1 indicating how probable an event is to take place.

Statistic

A numerical value that describes a characteristic of a sample.