Question: Which statement is true about the difference between futures and forward contracts? 1 . If there are significant price fluctuations before the maturity date, futures

Which statement is true about the difference between futures and forward contracts?
1. If there are significant price fluctuations before the maturity date, futures contracts can lead to more unfavorable results compared to forward contracts.
2. None of them.
3. Futures contracts are settled at the end of the maturity, while forward contracts are settled daily.
4. Futures contracts are traded on the exchange, while forward contracts are traded on CCP.
5. Futures contracts have a fixed price, while forward contracts have a price determined at the maturity.

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!