5. Forward and futures contracts Aa Aa E. The derivatives markets contain different types of contracts. Forward contracts, futures contracts, options, and swaps are some common types of derivatives contracts. Based on your understanding of forward and futures contracts, identify the differences between the two: Forward Futures Contracts Contracts These contracts cannot be executed for any quantity. Each contract specifies the volume of the assets traded, including the necessary technical specifications of the asset For the execution of these contracts, brokers require both parties to maintain margin accounts or performance bonds to ensure that payments are made when the contract matures. These contracts possess performance risk, implying that the party having losses may not be able to make payments to fulfill the contract. True or False: The volume of trading conducted in contracts for interest rate and exchange rate futures is greater than the volume of trading occurring in commodity futures contracts. O True O False