Which statement is true about the difference between futures and forward contracts? 1. Futures contracts have a fixed price, while forward contracts have a price determined at the maturity. 2. Futures contracts are settled at the end of the maturity, while forward contracts are settled daily. 3. Futures contracts are traded on the exchange, while forward contracts are traded on CCP. 4. If there are significant price fluctuations before the maturity date, futures contracts can lead to more unfavorable results compared to forward contracts. 5. None of them.

Which statement is true about the difference between futures and forward contracts? 1. Futures contracts have a fixed price, while forward contracts have a price determined at the maturity. 2. Futures contracts are settled at the end of the maturity, while forward contracts are settled daily. 3. Futures contracts are traded on the exchange, while forward contracts are traded on CCP. 4. If there are significant price fluctuations before the maturity date, futures contracts can lead to more unfavorable results compared to forward contracts. 5. None of them.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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