Question

Describe 4 differences between forward contracts and futures contracts.

Describe 4 differences between forward contracts and futures contracts.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
One of the key differences between forward contracts and futures contracts is: (a) Forward contracts trade...
One of the key differences between forward contracts and futures contracts is: (a) Forward contracts trade on the financial markets. (b) Futures contracts can be arranged for almost any currency. (c) Futures contracts can be “unwound” (bought or sold) prior to expiration. (d) Forward contracts are limited to standardized delivery dates. (e) None of the above And explain?
The major difference between valuing futures versus forward contracts stems from the fact that future contracts...
The major difference between valuing futures versus forward contracts stems from the fact that future contracts are a. Relatively inflexible. b. Less risky. c. Traded on exchange. d. Marked-to-market daily. e. Backed by a clearinghouse.
What factors distinguish a forward contract from a futures contract? What do forward and futures contracts...
What factors distinguish a forward contract from a futures contract? What do forward and futures contracts have in common? What advantages does each have over the other?
Compared to forward contracts, futures contracts are least likely to be: Select one: a. standardized. b....
Compared to forward contracts, futures contracts are least likely to be: Select one: a. standardized. b. larger in size. c. less subject to default risk.
Contrast an option with a forward or futures contract. Could either or both of these contracts...
Contrast an option with a forward or futures contract. Could either or both of these contracts have negative value to you?
Explain how currency forward contracts and currency futures contracts work. How might an MNC use these...
Explain how currency forward contracts and currency futures contracts work. How might an MNC use these instruments? How might a speculator use a put or call option?
What is one way that futures differ from forward contracts? a. Futures are typically traded on...
What is one way that futures differ from forward contracts? a. Futures are typically traded on exchanges, while forwards are usually traded over-the-counter. b. Futures are typically settled only at expiration, while forwards are settled daily through marking to market. c. Futures represent an obligation to buy or sell the underlying asset at a specified price, while forwards do not. d. Futures are generally more customizable than forwards.
Hedging instruments (i.e. futures contracts, forward contracts, and currency swaps) are used by MNCs to: a....
Hedging instruments (i.e. futures contracts, forward contracts, and currency swaps) are used by MNCs to: a. speculate on fluctuating currency exchange rates b. speculate with risk management c. insulate the firm from some risk d. swap currency risk for interest rate risk
Describe how to use futures contracts to hedge. Calculate the profit or loss of using futures...
Describe how to use futures contracts to hedge. Calculate the profit or loss of using futures contract.
Discuss options and futures contracts. What common characteristics and differences do these financial instruments present? What...
Discuss options and futures contracts. What common characteristics and differences do these financial instruments present? What is it, what are the characteristics and what is the main function of Institutional Investors? Describe the similarities and differences between "fixed capital" and "closed" mutual funds. What is the difference between organized stock exchanges and over-the-counter sales markets? What is a key fiscal characteristic related to state and local (Municipal) values? Can you please include references? Thank you
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT