A Potential Disadvantage of Forward Contracts Versus Futures Contracts Is

Multiple Choice

A potential disadvantage of forward contracts versus futures contracts is:

A) the extra liquidity required to cover the potential outflows that can occur prior to delivery.
B) the higher incentive for a particular party to default.
C) that the buyers and sellers don't know each other and never meet.
D) the obligatory requirements rather than the optional opportunities.
E) the increased ability to close out a position prior to expiration.