Futures Differ from Forward Contracts Because

question 92

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) None of the above
• E) All of the above

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Definitions:

Actual Results

The real outcomes or results of business activities, measured in terms of performance, revenue, or profits, compared against planned or forecasted outcomes.

Shipping Container

A large, standard-sized metal box used for the transport of goods by sea or land.

Refurbishment

The process of cleaning, decorating, and re-equipping to make something look new or to restore it to good condition.

Revenue Variance

The difference between a company's actual revenue and its budgeted or projected revenue over a given period.