Question: Which statement about forwards and futures is wrong? A A forward contract is usually settled at maturity. B Counterparty risk is lower for futures than

Which statement about forwards and futures is wrong? A A forward

Which statement about forwards and futures is wrong? A A forward contract is usually settled at maturity. B Counterparty risk is lower for futures than for forwards. Both futures and forward have a range of delivery dates. D A futures contact is a standardized forward contract. Question 2 1 Point Covered interest arbitrage moves the market equilibrium because A toward; purchasing a currency on the spot market and selling in the forward market narrows the differential between the two B away from; purchasing a currency on the spot market and selling in the forward market increases the differential between the two away from; demand for the stronger currency forces up interest rates on the weaker security D toward; investors are now more willing to invest in risky securities

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