Company A$,$ a coffee exporter, and Company B$,$ a local caf$,$ enter into a contract to buy

$10,000$ pounds of coffee beans at $$2\mathrm{.}50$ per pound, to be delivered in $6$ months. The

contract is customized to their specific needs and not traded on any exchange.

On the other hand, Investor X buys a standardized contract on an exchange to purchase

$5,000$ pounds of coffee beans at $$2\mathrm{.}60$ per pound, to be delivered in $6$ months, which can

be easily sold to another party on the exchange.

What is the key difference between the contract signed by Company A and Company $B$

and the one purchased by Investor $x?$

The contract between Company A and Company B is standardized, while the one purchased by

Investor X is customized.

The contract between Company A and Company B is a futures contract, while the one purchased

by Investor X is a forward contract.

The contract between Company A and Company B is a forward contract, while the one purchased

by Investor $x$ is a futures contract

The contract between Company A and Company B can be easily traded on an exchange, while the

one purchased by Investor $x$ cannot be traded.

Company A$,$ a coffee exporter, and Company B$,$ a local caf$,$ enter into a contract to buy

$10,000$ pounds of coffee beans at $$2\mathrm{.}50$ per pound, to be delivered in $6$ months. The

contract is customized to their specific needs and not traded on any exchange.

On the other hand, Investor X buys a standardized contract on an exchange to purchase

$5,000$ pounds of coffee beans at $$2\mathrm{.}60$ per pound, to be delivered in $6$ months, which can

be easily sold to another party on the exchange.

What is the key difference between the contract signed by Company A and Company $B$

and the one purchased by Investor $x?$

The contract between Company A and Company B is standardized, while the one purchased by

Investor X is customized.

The contract between Company A and Company B is a futures contract, while the one purchased

by Investor X is a forward contract.

The contract between Company A and Company B is a forward contract, while the one purchased

by Investor $x$ is a futures contract

The contract between Company A and Company B can be easily traded on an exchange, while the

one purchased by Investor $x$ cannot be traded.

Company A$,$ a coffee exporter, and Company B$,$ a local caf$,$ enter into a contract to buy

$10,000$ pounds of coffee beans at $$2\mathrm{.}50$ per pound, to be delivered in $6$ months. The

contract is customized to their specific needs and not traded on any exchange.

On the other hand, Investor X buys a standardized contract on an exchange to purchase

$5,000$ pounds of coffee beans at $$2\mathrm{.}60$ per pound, to be delivered in $6$ months, which can

be easily sold to another party on the exchange.

What is the key difference between the contract signed by Company A and Company $B$

and the one purchased by Investor $x?$

The contract between Company A and Company B is standardized, while the one purchased by

Investor X is customized.

The contract between Company A and Company B is a futures contract, while the one purchased

by Investor X is a forward contract.

The contract between Company A and Company B is a forward contract, while the one purchased

by Investor $x$ is a futures contract

The contract between Company A and Company B can be easily traded on an exchange, while the

one purchased by Investor $x$ cannot be traded.