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Which of the following statements is true regarding the distinction between futures contracts and forward contracts? A) Futures contracts are exchange-traded, whereas forward contracts are
Which of the following statements is true regarding the distinction between futures contracts and forward contracts?
A) Futures contracts are exchange-traded, whereas forward contracts are OTC traded. |
B) All else being equal, forward prices are higher than futures prices. |
C) Forward contracts are created from baskets of futures contracts. |
D) Futures contracts are always cash-settled at maturity, whereas forward contracts result in physical delivery. |
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