Forward contracts are equivalent to tailor-made futures contracts.

Name: Forward contracts are equivalent to tailor-made futures contracts.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Forward contracts and tailor-made futures contracts have similar features such as being customizable, having no standardization, involving delivery of assets at a future date, and being settled in cash or physical delivery. Therefore, they are equivalent in many ways.

Forward Contracts Are Equivalent to Tailor-Made Futures Contracts