Which of the following statements is a key difference between forwards and futures?
A) Futures contracts are more expensive than forward contracts.
B) Forward contracts are offered only for foreign currencies.
C) Futures contracts are always delivered.
D) Forward contracts are not generally marked-to-market.

Question

Quizplus · Accepted Answer

Forward contracts are not generally marked-to-market, which means their value is not regularly recalculated for settlement. In contrast, futures contracts are marked-to-market daily, affecting the margin requirements for the holders of the contracts.

Which of the Following Statements Is a Key Difference Between