One of the advantages of forward markets is
A)performance is guaranteed by the G-30
B)trading is less costly and governed by more rules
C)none of the above
D)trading is conducted in the evening over computers
E)the contracts are private and customized

Question

Quizplus · Accepted Answer

Forward markets offer the advantage of contracts that are tailored to the needs of the parties involved. Unlike standardized exchange-traded derivatives, forward contracts are private agreements between two parties to buy or sell an asset at a specified price on a future date. This customization allows for specific quantities, quality standards, delivery times, and other terms to be negotiated to suit the unique requirements of the counterparties. This flexibility is one of the key benefits of forward markets.

One of the Advantages of Forward Markets Is