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Company A , a coffee exporter, and Company B , a local caf , enter into a contract to buy 1 0 , 0 0
Company A a coffee exporter, and Company B a local caf enter into a contract to buy
pounds of coffee beans at $ per pound, to be delivered in 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
pounds of coffee beans at $ per pound, to be delivered in 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
and the one purchased by Investor
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 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 cannot be traded.
Company A a coffee exporter, and Company B a local caf enter into a contract to buy
pounds of coffee beans at $ per pound, to be delivered in 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
pounds of coffee beans at $ per pound, to be delivered in 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
and the one purchased by Investor
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 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 cannot be traded.
Company A a coffee exporter, and Company B a local caf enter into a contract to buy
pounds of coffee beans at $ per pound, to be delivered in 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
pounds of coffee beans at $ per pound, to be delivered in 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
and the one purchased by Investor
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 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 cannot be traded.
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