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Which Statement Best Describes Forward And/or Futures Contracts

Question 1

Multiple Choice

Which statement best describes forward and/or futures contracts?


A) One advantage of forward contracts is that they are default free.
B) Futures contracts generally trade on an organized exchange and are marked to market daily.
C) Goods are never delivered under forward contracts, but are almost always delivered under futures contracts.
D) While futures contracts can be constructed to accommodate both parties, forward contracts are standardized.

Correct Answer:

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