Which one of the following characteristics is similar in both futures and forward contracts?
A) Future transactions are conducted at a price agreed upon earlier.
B) Contracts are sold through organized exchanges.
C) Contract terms are standardized by type of commodity.
D) Price changes are settled daily in a process known as mark-to-market.

Question

Quizplus · Accepted Answer

Both futures and forward contracts involve transactions at a price agreed upon earlier, although futures are standardized and traded on exchanges, while forwards are private and customizable.

Which One of the Following Characteristics Is Similar in Both