Question: Which one of the following is a difference between a forward contract and a futures contract? A forward contract is a formal agreement while a

Which one of the following is a difference between a forward contract and a futures contract? A forward contract is a formal agreement while a futures contract is an informal agreement. There are no differences between fonward and futures contracts. Futures contracts are managed through an organized exchange while forward contracts are not. Forward contracts are based on commodities while futures contracts are based on financial instruments. The price of the asset exchanged is determined when a forward contract is entered while the price is set on the exchange date for a futures contract

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