The following is the benefit of forward contract: * 1 point A. No liquid market for forward contracts. B. Flexible and can be customized to the needs of the parties. C. The party who has better negotiating power may dictate an unfair price. D. One party may default which are not fulfilling the future obligation agreed upon earlier. In the forward or future agreement, at least three elements where buyer and * 1 point seller need to come into a consensus which are: 1. Asset match. II. Maturity match III. Quantity match A. I, II and III B. I, II and IV C. I, III and IV D. II, III and IV The following is NOT key elements of futures trading: * 1 point A. The futures price of a contract and the cash price will come together as the delivery month of the futures contract approaches. B. The difference or spread between the futures and spot prices should equal the net carrying cost. c. The practice where the additional margin payments that would have to be paid and is called the variation / maintenance margin. D. Stop order and call order are example of orders where the buyer and seller need to determine before they can agree on it. The following are the benefits of options EXCEPT: * 1 point A. Company using options as investment have potential to leverage their investment. B. Company can use options extensively in managing their speculative risk. C. Company can use options to enhance revenue of portfolios. D. Company can use options as financial engineering via strategies. The following statement is the best to indicate situation where the option 1 point does not have the intrinsic value: A. The strike price is less than market price for call option. B. The strike price is more than market price for put option. C. The strike price is less than market price for put option D. None of the above