Multiple Choice
Comparing "forward" and "futures" exchange contracts, we can say that
A) they are both "marked-to-market" daily.
B) their major difference is in the way the underlying asset is priced for future purchase or sale: futures settle daily and forwards settle at maturity.
C) a futures contract is negotiated by open outcry between floor brokers or traders and is traded on organized exchanges, while forward contract is tailor-made by an international bank for its clients and is traded OTC.
D) both b and c
Correct Answer:
Verified
Correct Answer:
Verified
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