22-53 What Is a Difference Between a Forward Contract and a Future

question 79

Multiple Choice

22-53 What is a difference between a forward contract and a future contract?

• A)The settlement price of a forward contract is fixed over the life of the contract but in a futures contract is marked to market daily.
• B)Forward contracts are normally arranged through an organized exchange,while most futures contracts are OTC contracts.
• C)Both are essentially the same,except for trading volumes which are higher for futures contracts.
• D)Both are essentially the same,except for the fact that the terms of a forward contract is set by the exchange,subject to the approval of the CFTC.
• E)Delivery of the underlying asset almost always occurs on a futures contract but almost never occurs on a forward contract.

Understand the role of autonomy, respect, and dignity in patient care.

Recognize the importance of veracity and accountability in nursing.

Apply ethical principles to analyze and resolve moral dilemmas in healthcare.

Comprehend the implications of not adhering to ethical principles in healthcare scenarios.

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Definitions:

Hedging

The use of cautious language to make statements less absolute, often to reduce risk or liability.

Wordy Phrases

Phrases or expressions that use more words than necessary to convey meaning, often making the text less clear and more cumbersome.

Relative Pronouns

Words that introduce relative clauses, connecting them to main clauses, and refer to nouns mentioned previously, like who, whose, which, and that.

Redundancies

The occurrence of unnecessary repetition in expression or function, often leading to inefficiency or excess.