Multiple Choice
Two key features of futures contracts that make them more in demand than forward contracts are:
A) futures are traded on exchanges and must be marked to the market.
B) futures contracts allow flexibility in delivery dates and provide a liquid market for netting positions.
C) futures are marked to the market and allow delivery flexibility.
D) futures are traded in liquid markets and are marked to the market.
Correct Answer:

Verified
Correct Answer:
Verified
Q8: A financial institution has equity equal to
Q9: A forward contract is described by:<br>A) agreeing
Q21: A bank has a $50 million mortgage
Q22: Interest rate and currency swaps allow one
Q23: The buyer of a forward contract:<br>A) will
Q25: Calculate the duration of a 7-year $1,000
Q26: Duration of a pure discount bond:<br>A) is
Q27: In the practical use of credit default
Q28: The duration of a 15 year zero
Q29: A mortgage banker had made loan commitments