Despite the Fact That Forward Contracts Carry More Credit Risk

question 59

Multiple Choice

Despite the fact that forward contracts carry more credit risk than futures contracts,forward contracts offer what primary advantage over futures contracts?

• A)the over-the-counter forward market is a highly regulated market
• B)forward contracts prevent the writer from assuming the credit risk of the buyer
• C)terms and conditions are tailored to the specific needs of the two parties involved
• D)transaction information between the two parties involved in the forward contract is readily available to the public
• E)conditions of the forward contract,such as delivery date and location,cannot be altered

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