n NISM Certifications
VII NISM Series VII
Medium

Futures contracts are special types of ________ contracts.

Practice question from NISM Series VII Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Swap

  2. Forward

    Correct answer

  3. C

    Arbitrage

  4. D

    Debt

Why this is the answer

Futures are standardized and exchange-traded forward contracts; forwards are private, non-standardized agreements.

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