The following is not a point of difference between futures and forwards.
A)The futures payoff depends on the spot price of the asset at contract maturity.
B)Futures are traded on an exchange.
C)Futures have standardized terms.
D)Default risk in a futures contract is borne by the exchange.

Question

Quizplus · Accepted Answer

This is not a point of difference between futures and forwards because the same is true for forwards as well. The payoff of a forward contract also depends on the spot price of the asset at the contract maturity.

The Following Is Not a Point of Difference Between Futures