Multiple Choice
For a futures contract on an asset to be successful compared to the alternative of forward contracts, which of the following features would help?
A) The most appropriate standardized grade for the contract is difficult to identify.
B) Counterparty credit risk is high.
C) Bid-ask spreads in the spot market are high.
D) The underlying spot asset is difficult to short.
Correct Answer:
Verified
Correct Answer:
Verified
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