Question: Multiple Choice Questions From questions 2 to 6 briefly explain why! (No more than 4 lines!) 3. Which of the following statements is not accurate?

Multiple Choice Questions

From questions 2 to 6 briefly explain why! (No more than 4 lines!)

3. Which of the following statements is not accurate?

A. Forward contracts underlying dividends paying securities cost more than those on non-dividend paying securities.

B. Forward contracts are legally binding.

C. Forward contracts have some liquidity although no cash is exchanged at inception.

D. Forward contracts are not protected against default risk.

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