Which of the Following Is a Reason Why the Default

Multiple Choice

Which of the following is a reason why the default risk of a futures contract is assumed to be less than that of a forward contract?

A) Forward contracts are classified as exotic derivatives.
B) Margin requirements on futures.
C) More flexibility as the buyer can decide whether or not to exercise the contract at maturity.
D) None of the listed options are correct.as the default risk of a futures contract is generally considered to be higher than that of a forward contract.