A Forward Contract

question 30

Multiple Choice

A forward contract:

• A)has more credit risk than a futures contract
• B)is more standardised than a futures contract
• C)is marked to market more frequently than a futures contract
• D)has a shorter time to delivery than a futures contract
• E)is less risky than a futures contract.

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Definitions:

Hydraulic Fracturing

A process used in the oil and gas industry to increase the flow of oil or gas from a well by injecting high-pressure fluid into the surrounding rock.

Fracking

A method of extracting natural gas or oil from the earth by injecting fluid into subterranean rocks at high pressure.

Civil Law

Civil law is a legal system that deals with disputes between private parties, and includes laws such as contracts, torts, and property, distinguishing it from criminal law.

Legal Realism

The school of jurisprudence which dictates that context must be considered as well as law. Context includes factors such as economic conditions and social conditions.