Two key features of futures contracts that make them more in demand than forward contracts are:
A)futures are traded on exchanges and must be marked to the market.
B)futures contracts allow flexibility in delivery dates and provide a liquid market for netting positions.
C)futures are marked to the market and allow delivery flexibility.
D)futures are traded in liquid markets and are marked to the market.
E)All of the above.

Question

Quizplus · Accepted Answer

Futures contracts are traded on exchanges, which provides a liquid market for netting positions. They are also marked to the market, which means that the value of the contract is adjusted daily to reflect the current market price. This makes futures contracts more flexible than forward contracts, which are not traded on exchanges and are not marked to the market.

Two Key Features of Futures Contracts That Make Them More