Solved

Which of the Following Statements Is Most CORRECT

Question 2

Multiple Choice

Which of the following statements is most CORRECT?


A) One advantage of forward contracts is that they are default free.
B) Futures contracts generally trade on an organized exchange and are marked to market daily.
C) Goods are never delivered under forward contracts,but are almost always delivered under futures contracts.
D) Forward contracts are generally standardized instruments,whereas futures contracts are generally tailor-made for the 2 parties of the contract.
E) Essentially there are no differences between forward and futures contracts,except that forward contracts are used only for financial assets while futures contracts are used only for commodities.

Correct Answer:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents