Comparing "forward" and "futures" exchange contracts, we can say that they are both "marked-to-market" daily. their major difference is in the way the underlying asset is priced for future purchase or sale: futures settle daily and forwards settle at maturity. a futures contract is negotiated by open outcry between floor brokers or traders and is traded on organized exchanges, while forward contract is tailor-made by an international bank for its clients and is traded OTC. both b and c Yesterday, you entered into a futures contract to buy pound62,500 at $1.50 per pound. Your initial performance bond is $ 1,500 and your maintenance level is $500. At what settle price will you demand for additional funds to be posted? Suppose you observe the following 1 -year interest rates, spot exchange rates and futures. Futures contracts are available on 10,000. How much risk-free arbitrage profit could you 1 contract at maturity from this mispricing