Which of the following is NOT an advantage of using futures contracts to hedge an exposure compared to using forward contracts to hedge the same exposure?A.Futures generally have more liquid markets.B.Futures generally offer lower counter-party risk.C.Futures have very low transaction costs.D.Futures are available on a greater range of products.

Futures contracts and forward contracts are both financial derivatives that allow the buyer and seller to buy or sell an asset at a specified price at a future date. However, they have some differences that can make one more advantageous than the other in certain situations.

A. Futures generally have more liquid markets: This is true. Futures contracts are traded on exchanges, which typically have more participants and higher trading volumes than the over-the-counter markets where forward contracts are traded.

B. Futures generally offer lower counter-party risk: This is also true. Futures contracts are standardized and backed by clearing houses, which guarantee the performance of the contract. This reduces the risk that the other party will default on their obligations.

C. Futures have very low transaction costs: This is generally true. Because futures contracts are traded on exchanges, they often have lower transaction costs than forward contracts.

D. Futures are available on a greater range of products: This is not necessarily true. While futures contracts are available for a wide range of commodities and financial instruments, forward contracts can be customized to fit any asset, quantity, delivery date, and delivery location. Therefore, forward contracts can potentially be used to hedge a wider range of exposures than futures contracts.

Therefore, the answer is D. Futures are available on a greater range of products. This is not an advantage of using futures contracts to hedge an exposure compared to using forward contracts to hedge the same exposure.