Question: The difference between the forward contracts and the futures is _______. a. Size of futures contracts are tailored to individual needs. b. Small security deposit

The difference between the forward contracts and the futures is _______.

a. Size of futures contracts are tailored to individual needs.

b. Small security deposit is required for futures contract.

c. Forward contracts are handled by exchange clearinghouse.

d. None of the above.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Questions > Moving to another question will save this response Question 18 The difference between the forward contracts and the futures is Size of futures contracts are tailored to individual needs....

Q:

Hello Sir, Could you please assist this project urgently. I have to submit it by sunday. UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K x Annual Report Pursuant to...

Q:

Hello Sir, Could you please assist this project urgently. I have to submit it by sunday. UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K x Annual Report Pursuant to...

Q:

Currency Futures, Daily Profits and Balances, and Margin Call Sofian is a small investor. All his life, he invested in stocks and bonds. Nowadays, he is looking into different alternatives like...

Q:

Sofian is a small investor. All his life, he invested in stocks and bonds. Nowadays, he is looking into different alternatives like futures and options. He doesn't know much about these investment...

Q:

Study guide questions 20 multiple choice 1. What contract did the Apple farmer and Pie Chain set up? According to the contract, when will the Chain buy the 1 million lbs of apples? forward contract;...

Q:

Question 4 (1 point) One reason so few futures contracts are used for the actual delivery of the underlying asset is that most participants are speculators; they don't need the asset spot prices are...

Q:

Question 11(5 points) A 6-month $85 call option on a stock has an option premium of $.54. The 6-month, $85 put option has an option premium of $1.15. The risk-free rate is 2.5 percent. The options...

Q:

Which of the following INCREASE the money supply? A) The Fed buys U.S. Treasury securities and banks lend out all excess reserves. B) The excess reserves-to-deposit ratio increases. C) The Fed...

Q:

The mechanics of exchange rate arithmetic, though fundamentally simple, can be confusing for those not using it on a regular basis. The questions below are designed to provide practice in the more...

Q:

What is a Sharpe ratio?

Q:

Assume that the total cost curve for an imperfectly competitive firm (say, monopolist) is given by TC = 0.5q + 15 Also, suppose it faces an (inverse) demand curve of p = 100 - 0.5q. a) Derive the...

Q:

If you have a positive reaction for Lub can you rule out Lua

Q:

How do diversifiable and nondiversifiable risk affect a companys cost of capital?

Q:

There are several survey methods that health services researchers use to measure quality of life under different diseases.

Q:

Medical experts are ideal candidates for providing estimates of the quality weights associated with various health states.

Q:

Costbenefit analysis (CBA) allows us to pick an optimal treatment from the list of potentially cost-effective treatments.