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Questions 6 and 7 are general questions having to do with forward and futures contracts. A hedger using forward contracts Q6. a. Faces almost no

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Questions 6 and 7 are general questions having to do with forward and futures contracts. A hedger using forward contracts Q6. a. Faces almost no default risk from the forward contract. b. Will most likely use the forward contract for delivery. c. Will usually have daily cash flows resulting from the forward contract. d. Will be required to most margin. A hedger using futures contracts Q7. a. Faces almost no default risk from the futures contract. b. Will most likely use the futures contract for delivery. c. Will usually not have daily cash flows resulting from the futures contract. d. Will not be required to most margin

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