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The reason that counterparty risk in a futures contract is lower than in a forward contract: (Choose ALL the correct answer(s) that apply) 1 The

The reason that counterparty risk in a futures contract is lower than in a forward contract: (Choose ALL the correct answer(s) that apply)

1 The futures contract is marked-to-market on a daily basis

2 The futures exchange bears the counterparty risk

3 The forward market does not charge commissions that may be used to offset the risk of counterparty failure

4 The participants in the futures market are better funded

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