Question

What is a notable characteristic of the size and variety of forward contracts compared to other derivatives like Futures?

a.

They are smaller and more standardized.

b.

They are generally larger in size and more diverse in nature.

c.

They have fixed terms and conditions.

d.

They are more liquid in secondary markets.

Answer: (b).They are generally larger in size and more diverse in nature. Explanation:Forward contracts are generally found to be much larger in size and variety in nature than other derivatives like Futures.

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Q. What is a notable characteristic of the size and variety of forward contracts compared to other derivatives like Futures?

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