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Which of the following is TRUE about forward and futures contracts? [3 marks] Select one: a. The forward contracts are traded on exchanges while futures

Which of the following is TRUE about forward and futures contracts?

[3 marks]

Select one:

a. The forward contracts are traded on exchanges while futures contracts are traded in the over-the-counter market.

b. Forward contracts are more liquid than futures contracts.

c. Taxes and transaction costs can not lead to forward and futures prices being different.

d. Options on futures contracts are still futures contracts.

e. In theory forward prices and futures prices are equal when there is no uncertainty about future interest rates.

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