The forward contract differs from a futures contract in that:
A) the forward contract is to be settled immediately.
B) the futures contract specifies a fixed amount and arranged date, whereas the forward contract can be for any amount or date.
C) the futures contract cannot be traded in a market, whereas the forward contract can be bought in the market.
D) forward contracts are standardized, whereas futures contracts are not standardized.

Question

Quizplus · Accepted Answer

A forward contract is a customized agreement between two parties, whereas a futures contract is standardized in terms of amount, expiration date, and settlement procedures.

The Forward Contract Differs from a Futures Contract in That