When a standardized forward contract is traded on an exchange, it is called:
A) forward contract
B) futures contract
C) options contract
D) none of the above

Question

Quizplus · Accepted Answer

When a standardized forward contract is traded on an exchange, it is called a futures contract. This is because futures contracts are standardized contracts traded on an exchange, while forward contracts are typically customized agreements between two parties.

When a Standardized Forward Contract Is Traded on an Exchange