Which of the Following Statements Is True

question 55

Multiple Choice

Which of the following statements is true?

• A)The default risk in futures contracts is considered to be less than that of forward contracts because of daily marking to market of futures.
• B)The default risk in futures contracts is considered to be less than that of forward contracts because of margin requirements on futures that act as a security bond and because of default guarantees by the future exchange itself.
• C)The default risk in futures contracts is considered to be less than that of forward contracts because of price limits that spread out over times of extreme price fluctuations.
• D)All of the listed options are correct.