Question: 1. What is a characteristic of a forward contract? a Traded on an exchange b Negotiated with a counterparty c Covers a stream of future

1. What is a characteristic of a forward contract?
a Traded on an exchange
b Negotiated with a counterparty
c Covers a stream of future payments
d Must be settled daily

2. What is a characteristic of a swap?
a Traded on an exchange
b Only interest rates can be the underlying
c Covers a stream of future payments
d Must be settled daily

3. What is a characteristic of a futures contract?
a Gives the holder the right but not the obligation to buy or sell
b Negotiated with a counterparty
c Covers a stream of future payments
d Must be settled daily

4. What is a characteristic of an option?
a Gives the holder the right but not the obligation to buy or sell
b Negotiated with a counterparty
c Covers a stream of future payments
d Must be settled daily

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