Question: 8. Foreign currency futures contracts differ from forward contracts in the following important ways EXCEPT: (a) Futures are standardized in terms of size while forwards

8. Foreign currency futures contracts differ from forward contracts in the

8. Foreign currency futures contracts differ from forward contracts in the following important ways EXCEPT: (a) Futures are standardized in terms of size while forwards can be customized (b) Futures have no fixed maturities while forwards can have any maturity (c) Trading on futures occurs on organized exchanges while forwards are traded between individuals and banks (d) Futures have an initial margin that is market to market on a daily basis while only a bank relationship is needed for a forward 2

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