Which of the following is Correct?

(A) Short Forward is not subject to any risk of default

(B) Short Forward is used when speculators predict a price increase in the future

(C) Short Forward is subject to unlimited loss potential without cash and carry strategy

(D) Short Forward and Long Forward share the same prediction of future price changes Answer: _______________

7. Which of the following is True?

(A) Futures are non-standardized contracts

(B) Futures are closed out early with an offsetting trade (

C) Futures are settled only at maturity with high default risk

(D) Futures are subject to weekly settlement