Multiple Choice
Which of the following statements are TRUE?
A) Futures contracts have less liquidity risk and credit risk than forward contracts.
B) Futures contract prices are strongly linked to the prevailing level of the underlying spot index.
C) Futures contract decrease in price the further forward in time the delivery date is set.
D) Futures contracts have more liquidity risk and credit risk than forward contracts.
E) Futures contract prices are weakly linked to the prevailing level of the underlying spot index.
Correct Answer:
Verified
Correct Answer:
Verified
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