Most actively traded forward contracts are written on:
A)Canadian Treasury bills.
B)Standard & Poor's index.
C)Wheat contracts.
D)Foreign currencies.

Question

Quizplus · Accepted Answer

Foreign currencies are typically the most actively traded forward contracts, as they are used by businesses and investors to hedge against currency fluctuations and manage foreign exchange risk. While contracts on Canadian Treasury bills and wheat may also be actively traded, they are not as widely used or traded as foreign currency contracts. Contracts on the Standard & Poor's index may also be traded, but they are typically used more for speculation and hedging equity risk, rather than managing currency risk.

Most Actively Traded Forward Contracts Are Written On