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Derivatives
Derivatives
Easy
Compared to forward contracts, futures contracts are most likely to have:
A
Lower counterparty risk due to daily settlement and clearinghouse guarantees
B
Greater customization of contract terms to meet specific hedging needs
C
No margin requirements since the exchange bears all risk
D
Higher counterparty risk because the exchange cannot monitor all participants
Select an answer to continue
Tags
#forwards-vs-futures
#counterparty-risk
#clearinghouse
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