Which of the following characteristics is similar in both futures and forward contracts?
A) Future asset transactions are conducted at an agreed price.
B) Contracts are sold through organized exchanges.
C) Contract terms are standardized.
D) Price changes are settled daily.

Question

Quizplus · Accepted Answer

Both futures and forward contracts involve transactions at an agreed price, although futures are standardized and traded on exchanges, while forwards are customized and traded over-the-counter.

Which of the Following Characteristics Is Similar in Both Futures