16. Which one of the following is NOT a true statement? A. Forward contracts inv

Question

16. Which one of the following is NOT a true statement? A. Forward contracts involve a clearinghouse B. For futures, short position’s loss is equal to the long position’s gain C. The maintenance margin is the value of the margin account below which the holder of a futures contract receives a margin call D. For futures, counterparty credit risk is not a concern 16. Which one of the following is NOT a true statement? A. Forward contracts involve a clearinghouse B. For futures, short position’s loss is equal to the long position’s gain C. The maintenance margin is the value of the margin account below which the holder of a futures contract receives a margin call D. For futures, counterparty credit risk is not a concern

Explanation / Answer

For futures, counterparty credit risk is not a concern

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