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The Difference Between a Futures Contract and a Forward Contract

Question 9

Multiple Choice

The difference between a futures contract and a forward contract is the:


A) Payoff profile of the buyer.
B) Payoff profile of the seller.
C) Settlement process.
D) Use of the spot rate versus the contract rate at settlement.
E) Ability to write a futures contract, but not a forward contract, on an exchange rate.

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