Which of the following statements is most correct?
A) A forward contract, just like a futures contract, is an agreement for the future delivery of something at a specified price at the end of a designated period of time.
B) A forward contact, just like a futures contract, is traded on an exchange floor.
C) A forward contract differs from a futures contract in that is it usually nonstandardized.
D) a and c only.
E) All of the above.

Question

Quizplus · Accepted Answer

A forward contract, similar to a futures contract, indeed involves an agreement for future delivery at a specified price, but it differs from a futures contract in that it is typically nonstandardized and not traded on an exchange.

Which of the Following Statements Is Most Correct