Which Statement Best Describes Forward And/or Futures Contracts

question 7

Multiple Choice

Which statement best describes forward and/or futures contracts?

• A)One advantage of forward contracts is that they are default free.
• B)Futures contracts generally trade on an organized exchange and are marked to market daily.
• C)Goods are never delivered under forward contracts, but are almost always delivered under futures contracts.
• D)While futures contracts can be constructed to accommodate both parties, forward contracts are standardized.

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Definitions:

Between 2008 And 2011

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The act of protecting oneself from harm using reasonable force, especially from immediate physical threat.

Article 51

A provision in the United Nations Charter that provides a right to countries to engage in self-defense if attacked.

United Nations Charter

The foundational treaty of the United Nations, signed in 1945, outlining the organization's purposes, principles, and the framework for international cooperation and peacekeeping.