One of the major disadvantages of forward contracts is

A-they are not subject to default risk

B- their terms are not flexible

C- their terms are flexible

D-they are subject to default risk

they are not subject to default risk their terms are not flexible their terms are flexible they are subject to default risk . If a financial institution finds it difficult to execute a transaction in the interest-rate forward market at an acceptable price this is likely due to:

A. counterparty risk

B. default risk

C. interest rate risk

D. lack of liquidity