Which of the Following Is a Major Difference Between Forwards

question 31

Multiple Choice

Which of the following is a major difference between forwards and futures?

• A)Forwards are marked to market, while futures are not.
• B)Futures are tailor made, while forwards are standardised.
• C)The default risk of futures is significantly reduced by the futures exchange guaranteeing to indemnify counterparties against credit risk, while this is not the case for forwards.
• D)Forwards are marked to market, while futures are not, futures are tailor made, while forwards are standardised and the default risk of futures is significantly reduced by the futures exchange guaranteeing to indemnify counterparties against credit risk, while this is not the case for forwards.

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Direct Examination

The examination of a witness by the attorney who calls the witness to the stand at trial to testify on behalf of the attorney’s client.

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A person or entity that brings a lawsuit against another in a court of law.

Summary Judgment

A legal judgment made by a court without a full trial, based on the presented facts where there is no dispute.

Motion To Dismiss

A legal filing requesting that a court dismiss a case for reasons such as lack of jurisdiction, failure to state a claim, or other legal defenses.