Which statement is true about the difference between futures and forward contracts?

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter5: Currency Derivatives
Section: Chapter Questions
Problem 1IEE
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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.

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