Derivatives Q32

32Which of the following statements is most accurate?

A
A forward contract is default-free, whereas a futures contract is not.
B
A forward contact allows parties to enter into a customized transaction, whereas a futures contract does not.
C
A forward contract can easily be offset prior to expiration, whereas it is difficult to offset a futures contract prior to expiration.

Option : B
Explanation : Unlike futures contracts, which have standardized features, forward contracts can be customized to suit the needs of the parties involved.

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