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Comparing "Forward" and "Futures" Exchange Contracts,we Can Say That

Question 20

Multiple Choice

Comparing "forward" and "futures" exchange contracts,we can say that:


A) they are both "marked-to-market" daily
B) their major difference is in the way the underlying asset is priced for future purchase or sale
C) a futures contract is negotiated by open outcry between floor brokers or traders and is traded on organized exchanges, while forward contract is tailor-made by an international bank for its clients and is traded OTC
D) b and c

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