Futures Differ from Forward Contracts Because

question 63

Multiple Choice

Futures differ from forward contracts because

• A) futures have more liquidity risk.
• B) futures have more credit risk.
• C) futures have more maturity risk.
• D) futures do not require collateral.
• E) None of these are correct.

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Definitions:

Internal Biological Clock

An innate mechanism that controls the physiological activities of an organism, ensuring they occur at optimal times.

Consciousness

The state of being aware of and able to think about one's own existence, sensations, thoughts, surroundings, and experiences.

Awareness

The state or ability to perceive, feel, or be conscious of events, objects, or sensory patterns.

Environment

The surroundings or conditions in which a person, animal, or plant lives or operates, encompassing both natural and built environments.