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.
Ans: b. the futures contract specifies a fixed amount and arranged date, whereas the forward contract can be for any amount or date.
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Which of the following strategies does your text suggest would allow a poorer nation to "catch up" to richer nations?
A) Unionization B) Higher minimum wages C) Lower interest rates D) Adoption of advanced technology E) Minimizing imports and maximizing exports
Refer to Figure 13.1. All else equal, a decrease in government purchases would best be represented by a movement from
A) point A to point B. B) point B to point A. C) point B to point C. D) point C to point B.