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:

Analyzing

The process of examining components or data critically to understand their nature, function, or meaning, often by breaking them down into simpler parts or identifying patterns.

Sapir-Whorf Hypothesis

The theory that the structure of a language affects its speakers' world view or cognition, and thus people's perceptions are relative to their spoken language.

Hypothesis

A tentative explanation of the relationships among certain phenomena.

Sound Pitch

The auditory perception of the frequency of a sound wave, which determines the highness or lowness of a tone.