The terms of futures contracts _______ standardised and the terms of forward contracts _______ standardised.
A) are; are also
B) are not; are
C) are; are not
D) are; may be

Question

Quizplus · Accepted Answer

Futures contracts are standardized in terms of contract size, delivery date, and the quality of the underlying asset. Forward contracts, on the other hand, are customized to the specific needs of the two parties involved, with no standardization in terms of contract size or delivery date.

The Terms of Futures Contracts _______ Standardised and the Terms