Question

Which of the following is true with respect to the difference between futures and forward contracts?

A. Futures contracts are marked-to-market daily, while forward contracts are not

B. Buyers and sellers deal directly with each other on forward contracts but go through organized exchanges in futures contracts

C. Futures contracts are standardized, forward contracts generally are not

D. Forward contracts are generally more risky because no exchange guarantees the settlement of each contract if one or the other party to the contract defaults

E. All of the options describe differences between futures and forward contracts

Answer

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