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Which of the following are differences between a currency futures contract and a forward contract? a . The futures contract is marked to market daily
Which of the following are differences between a currency futures contract and a forward contract?
a
The futures contract is marked to market daily whereas the forward contract is only due to be settled at maturity.
b
The counterparty to the futures participant is unknown with the clearinghouse stepping into each transaction whereas the forward contract participants are in direct contact setting the forward specifications.
c
A single sales commission covers both the purchase and sale of a futures contract whereas there is no specific sales commission with a forward contract because banks earn a profit through the bidask spread.
d
All of the above are true.
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