Question
Hedging with forwards and futures contracts is different due to the nature of the two contracts. Which of the following statements is INCORRECT in terms
Hedging with forwards and futures contracts is different due to the nature of the two contracts. Which of the following statements is INCORRECT in terms of a comparison of the two derivatives? Group of answer choices
a. Forward contracts are better at reducing legal risk.
b. Futures contracts are better at reducing transaction costs.
c. Futures contracts are better at reducing credit risk.
d. Futures contracts are more standardized.
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Essentials Of Managerial Finance
Authors: Scott Besley, Eugene F. Brigham
13th Edition
0324258755, 9780324258752
