Which of the following is not true regarding futures contracts?
A) Unlike forward contracts, they are generally traded on an exchange.
B) Futures contracts are standardized with respect to delivery date and size of the contract.
C) There is an active over-the-counter market for currency futures contracts.
D) Currency futures can be used by speculators who attempt to profit from exchange rate movements.

Question

Quizplus · Accepted Answer

Futures contracts are not generally traded in the over-the-counter market, but rather on organized futures exchanges. However, there are some exceptions, such as foreign currency futures, which are traded in both organized exchanges and the over-the-counter market. Therefore, statement C is false.

Which of the Following Is Not True Regarding Futures Contracts