Two key features of futures contracts that make them more in demand than forward contracts are:
A) futures are traded on exchanges and must be marked to the market.
B) futures contracts allow flexibility in delivery dates and provide a liquid market for netting positions.
C) futures are marked to the market and allow delivery flexibility.
D) futures are traded in liquid markets and are marked to the market.
E) All of

Question

Quizplus · Accepted Answer

Futures are traded on exchanges and must be marked to the market, which provides greater transparency and liquidity. They also allow flexibility in delivery dates and provide a liquid market for netting positions, making them more in demand than forward contracts.

Two Key Features of Futures Contracts That Make Them More