Question

What is a characteristic feature of forward contracts in terms of customization?

a.

They are standardized contracts.

b.

They are tailored to the specific needs of individual counterparties.

c.

They are small and generic in nature.

d.

They have fixed terms and conditions.

Posted under IC 89 Management Accounting

Answer: (b).They are tailored to the specific needs of individual counterparties. Explanation:Forward contracts are customised and tailor-made to cater to the specific needs of individual counterparties.

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Q. What is a characteristic feature of forward contracts in terms of customization?
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