Briefly discuss the relative advantages and disadvantages of an exchange-traded futures contract compared to a forward contract.

What are financial futures? Explain the basic characteristics that distinguish a futures contract from a forward contract.
Explain the role of each of the following parties in a futures contract
i. Futures commission merchant
ii. Locals
iii. Clearing house

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Answer 1 Some advantages of an exchangetraded futures contract compared to a forward contract include A futures contract is standardized which makes i... View the full answer