Counterparty Risk in a Futures Contract Is Lower Than in a Forward

Multiple Choice

Counterparty risk in a futures contract is lower than in a forward contract because

A) The participants in the futures market are better funded.
B) The futures contract is marked-to-market on a daily basis.
C) The futures exchange bears the counterparty risk.
D) The forward market does not charge commissions that may be used to offset the risk of counterparty failure.