One distinction between futures and forward contracts

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Reference no: EM131532422

1. One distinction between futures and forward contracts is

Forward contracts can be used to hedge and speculate, while futures contracts are only used for hedging purposes.

Forward contracts are highly standardized.

Futures contracts mark to market.

Futures contracts highly specialized.

2. If the spot price for the pound in terms of dollars decreases over a given amount of time, the futures price for pounds (in terms of USD) would likely decrease over that same time period.

True

False

Reference no: EM131532422

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