A potential disadvantage of forward contracts versus futures contracts is: A. Both (a performance bond...

60.1K

Verified Solution

Question

Finance

A potential disadvantage of forward contracts versus futures contracts is:

A. Both (a performance bond is required for a forward contract & that the buyers and sellers don't know each other and never meet)

B. the incentive for a particular party to default.

C. a performance bond is required for a forward contract

D. that the buyers and sellers don't know each other and never meet.

E. All of these.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students