Which of the following statements is most CORRECT? a)One advantage of forward co

Question

Which of the following statements is most CORRECT?
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)Forward contracts are generally standardized instruments, whereas futures contracts are generally tailor-made for the 2 parties of the contract.


e)Essentially there are no differences between forward and futures contracts, except that forward contracts are used only for financial assets while futures contracts are used only for commodities.

Explanation / Answer

e)Essentially there are no differences between forward and futures contracts, except that forward contracts are used only for financial assets while futures contracts are used only for commodities.

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