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A potential disadvantage of forward contracts versus futures contracts is: A . the extra liquidity required to cover the potential outflows that occur prior to
A potential disadvantage of forward contracts versus futures contracts is:
A the extra liquidity required to cover the potential outflows that occur prior to delivery and caused by marking to market.
B the incentive for a particular party to default.
C that the buyers and sellers don't know each other and never meet.
D All of these.
E Both the extra liquidity required to cover the potential outflows that occur prior to delivery and caused by marking to market; and that the buyers and sellers don't know each other and never meet.
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