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Options
- A
Forwards are standardized and traded on exchanges
- B
Futures are customized contracts
-
Forwards are over-the-counter and futures are exchange-traded
Correct answer
- D
Futures do not require margin
Why this is the answer
Forward contracts are private agreements with customized terms, while futures are standardized and traded on exchanges with margin requirements. Options A, B, and D are incorrect because they reverse the characteristics.
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