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Question 13 (1 point) Which of the following statement is incorrect about future & forward difference?...

Question 13 (1 point)

Which of the following statement is incorrect about future & forward difference?

Question 13 options:

a)	Future is traded on the exchange and the forward is traded over the counter

b)	Futures are marked to market and forward is settled at the maturity

c)	Futures virtually have no counterparty default risk and forward is subject to counterparty default risk

d)	Future is privately negotiated and forward is a standardized contract

Question 14 (1 point)

Major advantages of futures contracts include the

Question 14 options:

a)	large number of currencies traded

b)	extensive delivery dates available

c)	unlimited contract sizes

d)	freedom to liquidate the contract at any time before its maturity

Expert Solution

Answer 13)

Future is privately negotiated and forward is a standardized contract. this statement is wrong as futures are regulated while forwards are not regulated.

Option d is correct.

Answer 14)

Future can be liquidated at any time before its maturity.

Option d is correct.

jeff jeffy answered 2 years ago

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