Question: Future contracts are subject to higher default risk than forward contracts requiring initial and maintenance performance bond standardized and provided primarily by financial institutions traded

  1. Future contracts are
  1. subject to higher default risk than forward contracts
  2. requiring initial and maintenance performance bond
  3. standardized and provided primarily by financial institutions
  4. traded with one big settlement at maturity through a clearing house
  1. Other things being equal, the cheapest option will be
  1. In-the-money European call options
  2. In-the-money American call options
  3. Out-of-the-money European options
  4. Out-of-the-money American call options

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