(Choose
1
Comparing "forward" and "futures" exchange contracts, we can say that
A. (i) they are both "marked-to-market" daily.
answer)
B. (ii) their major difference is in the way the underlying asset is priced for future purchase or sale: futures settle daily and forwards settle at maturity.
C. (iii) a futures contract is negotiated by open outcry between floor brokers or traders and is traded on organized exchanges, while forward contract is tailor-made by an international bank for its clients and is traded
OT
D. both (ii) and (iii).
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Exit 32
