Futures contracts can circumvent the problematic features of forward contracts except the problem that they:
A) are not standardised
B) have a high risk of default
C) lack liquidity
D) have short maturities

Question

Quizplus · Accepted Answer

Futures contracts are standardized, traded on exchanges which reduces the risk of default, and are generally more liquid compared to forward contracts. However, they often have shorter maturities than forward contracts, which is a limitation that they do not circumvent.

Futures Contracts Can Circumvent the Problematic Features of Forward Contracts