Question: Which of the following is one difference between a forward contract and a futures contract? Group of answer choices a. Forward contacts cannot be made

Which of the following is one difference between a forward contract and a futures contract?

Group of answer choices

a. Forward contacts cannot be made on foreign currencies but futures contacts can.

b. Futures contacts cannot be made on foreign currencies but forward contacts can.

c. Futures contracts are standardized and trade on organized exchanges.

d. Futures contracts are customized contracts between foreign currency dealers and their customers.

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:

Determine the normal force, shear force, and moment in the beam at points C and D. The beam is supported at A and B. 4 kip 3 ft C 250 lb/ft -4 ft4 ft- A -6 ft D 4 ft B

Q:

Question 16 of 20 : Select the best answer for the question 16. If you own 5 SPX call options with a strike of 1950, what's the payoff at maturity for these option contracts if the S&P 500 index is...

Q:

7. A contract made on S&P futures requires the seller to provide what to the buyer on the settlement date? a. One share or fractional share of stocks in the index per contract for cash paid by the...

Q:

Which of the following is NOT an assumption of market efficiency? A ) Instruments denominated in other currencies are perfect substitutes for one another. B ) Transaction costs are low or...

Q:

1) A currency futures contract is marketed in __________ on the ____________. Select one: a. U.S. $, Chicago Board of Trade b. U.S. $, New York Stock Exchange c. more than fifteen foreign currencies,...

Q:

21. Assume that the spot S&P500 index is 1000.00 on March 31 and that the September S&P500 futures contract on that day is 1020.00. This futures contra will mature in 180 days. The 180 day riskless...

Q:

Foreign Currency Hedging and Interest rate hedging calculation hedge the hard one is Q1e Question 1 - Foreign Currency Hedging Below is a table of currency spot rates relating to the various...

Q:

What is the difference among the over-the-counter market and the trade- traded marketplace? Which of the 2 markets do the subsequent change in: (a) a forward contract, (b) a futures contract, (c) an...

Q:

Answer all the Questions in the attachment Below.. a i. Distinguish between "price limit" and a "position limit" as applied in derivatives markets. ii. Explain the purpose of price limit and position...

Q:

Can any body answer the question 9) Unlike forward contracts, the size of currency futures contracts are A) a standardized amount that differs for each currency traded B) a function of the initial...

Q:

Hi, do you have the answers for the course International Financial Markets? This is my homework: Thanks! 1) A perpetuity that pays $250 per year at an interest rate of 4% would have a market price...

Q:

The primary purpose of the liquidity ratios is to determine which of the following: the extent to which borrowed funds are used to finance assets the ability of the firm to meet short-term...

Q:

Gohan Companys output for the current period yields a $12,000 favorable overhead volume variance and a $21,500 unfavorable overhead controllable variance. Standard overhead charged to production for...

Q:

ndicate whether the cash flow item below relates to an Operating Activity, Investing Activity, or Financing Activity: Answer 1 FinancingInvestingOperating 1 . Cash loaned to borrowers Answer 2...

Q:

Draw a class diagram and its relationship based on the following statements. You can use any UML tool/software to represent your class diagram. Do NOT copy and paste your diagram, use the attachment...