Question

Which of the following is NOT true Futures contracts are settled daily through the marking to...

Which of the following is NOT true

Futures contracts are settled daily through the marking to market.
Futures contracts nearly always last longer than forward contracts
Futures contracts are typically traded on a standardized exchange.
Forward contracts usually have one specified delivery date; futures contract often have a range of delivery dates.
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Answer #1

Futures contracts is a standardize financial contract between two parties in which one party agree to buy or sell the commodity at a specific price and at a specific future date and the other party agree to make sell or purchase physical delivery does not occur the default risk in futures market is minimal.

Forward contracts are a customized financial contract between two parties in which one party agree to buy or sell the commodity at a specific price and at a specific future date and the other party agree to make sell or purchase physical delivery does not occur.

Both Futures and forward contact have similar maturity. So, incorrect statement is Futures contracts nearly always last longer than forward contracts.

Option (B) is not true.

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