The advantage of using a forward rate agreement FRA over a futures contract is: *       A. FRAs are highly standardized.       B. FRAs have only an initial margin and no ongoing maintenance margin.       C. the terms and conditions of a FRA can be negotiated.       D. FRAs have standardized maturities

In the context of financial derivatives, what is a futures contract? A) An agreement to exchange assets at a predetermined price and date. B) A contract that grants the holder the right, but not the obligation, to buy or sell an asset. C) A contract to buy or sell a specific quantity of an asset at a future date at a price specified today. D) A contract that provides regular interest payments and returns the principal at maturity.

A swap: Group of answer choices B. Gives the holder the right to see the underlying bond. A. Allows the buyer to purchase the underlying instrument. C. Is an OTC agreement to exchange the cash flows of two different securities. D. Not effective at managing interest rate risks.

Exchanges are different than Over the counter markets because on exchanges   A. Futures contracts are standardized   B.  All of the Above   C. Futures require margin   D. Futures are traded on an exchanges that clear