Question 654 future, forward
Which of the following statements about futures and forward contracts is NOT correct?
(a) Forward contracts are traded over-the-counter (OTC).
(b) Futures contracts are exchange traded.
(c) Futures contracts are highly standardised in their contract sizes and expiry dates.
(d) Forward contracts expose the winner to credit risk at maturity.
(e) Forward contracts are novated.
Copyright © 2014 Keith Woodward