Which of the following statements is FALSE? a. Futures have less credit risk than forwards. b. Futures and forward derivatives are traded. c. Futures and forward contracts can be used to hedge profits. d. Forward contracts do not have basis risk.

25.Which of the following statements is true regarding the distinction between futures and forward contracts?  A. Futures contracts are more customizable than forward contracts  B. Forward contracts are traded on organized exchanges  C. Futures contracts have standardized terms, while forward contracts are customizable  D. Forward contracts are settled at a future date

In relation to credit risk, which of the following is true?Question 1Select one:Since they are traded on organised exchanges, futures contracts involve considerable credit risk because you never know the identity of the counter party.Futures contracts have virtually no credit risk since the exchange clearing house guarantees delivery of the contract.Forward contracts are traded over the counter at banks and large financial institutions, so there is virtually no credit risk.

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.

Which of the following is a key advantage of futures contracts over forward contracts?  A. Customizable terms  B. Lack of counterparty risk  C. Standardized terms  D. Settled at the discretion of the parties involved

What is a key feature of futures contracts that distinguishes them from forward contracts?  A. Futures have standardized terms  B. Futures have longer maturities  C. Futures cannot be traded on exchanges  D. Futures involve physical delivery