Comparing forward and futures contracts, we can say that: a. forward contracts are traded on organized exchanges
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Question:
Comparing forward and futures contracts, we can say that:
a. forward contracts are traded on organized exchanges while futures contracts are traded over-the-counter.
b. forward contracts are standardized contracts while futures contracts are usually tailor-made.
c. delivery of the underlying asset is usually made in forward contracts and delivery of the underlying asset is seldom made in futures contracts.
d. forward contracts are mainly used for speculative purpose while futures contracts are mainly used for hedging purpose
Related Book For
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
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