4. Which of the following would be considered a key difference between a forward contract and a futures contract? (a) One clearinghouse is the counterparty to all forward contracts. (b) The owner of the forward contract receives cash flows from the underlying asset between contract origination and delivery. (c) Futures contract is marked to market regularly, while a forward contract is not. (d) Only forward contracts can be set up as cash settlement contracts.
4. Which of the following would be considered a key difference between a forward contract and a futures contract? (a) One clearinghouse is the counterparty to all forward contracts. (b) The owner of the forward contract receives cash flows from the underlying asset between contract origination and delivery. (c) Futures contract is marked to market regularly, while a forward contract is not. (d) Only forward contracts can be set up as cash settlement contracts.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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