Fill in the most appropriate term relating to either futures or forward contracts It is a zero-sum...

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Finance

Fill in the most appropriate term relating to either futures orforward contracts
It is a zero-sum game. Choose...Forward contract or Futurescontract
The exchange is for cash   Choose...Forward contractor Futures contract
The long position wins with a rise in market prices of theunderlying asset.   Choose...Forward contract or Futurescontract
The short position loses with a rise in market prices of theunderlying asset.   Choose...Forward contract or Futurescontract
Examples of such contracts are corn, wheat, oil and metal.  Choose...Forward contract or Futures contract
It is settled daily rather than some future date.Choose...Forward contract or Futures contract
The clearing house guarantees performance.  Choose...Forward contract or Futures contract
You never know who the actual counterparty is.

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Following are the answers to each of the statements as given below 1 It is a zero sum game Answer Forward Contracts In such contracts the party which is having the profit is equivalent to same amount of loss which has been incurred by the other party that is why it is known as zero sum game 2 The exchange is for cash Answer Forward Contracts In such contracts the exchange of a financial assets is only made with See Answer

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Fill in the most appropriate term relating to either futures orforward contractsIt is a zero-sum game. Choose...Forward contract or FuturescontractThe exchange is for cash Choose...Forward contractor Futures contractThe long position wins with a rise in market prices of theunderlying asset. Choose...Forward contract or FuturescontractThe short position loses with a rise in market prices of theunderlying asset. Choose...Forward contract or FuturescontractExamples of such contracts are corn, wheat, oil and metal. Choose...Forward contract or Futures contractIt is settled daily rather than some future date.Choose...Forward contract or Futures contractThe clearing house guarantees performance. Choose...Forward contract or Futures contractYou never know who the actual counterparty is.