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Forwards are subject to counterparty risk because they are private contracts between two parties, and there is a risk that one party may default on their obligations. In contrast, futures contracts (option B) are typically traded on organized exchanges with a clearinghouse acting as the counterparty to both parties, reducing counterparty risk. Options (option C) also involve counterparty risk, but it is generally lower compared to forwards because options are standardized and often traded on organized exchanges with similar clearing mechanisms as futures contracts.
Legendary singer and Bharat Ratna recipient Lata Mangeshkar passed away due to multiple organ failure. She passed away on?
What was the total volume of seafood exported by India in FY 202324?
Consider the following statement:
1. Lord Clive replaced Mir Jafar as governor of Bengal in 1760 in place of Mir Qasim
2. Battle of Plasse...
Which of the following institution launched ATL Sarthi, a comprehensive self-monitoring framework to strengthen the ever-growing ecosystem of Atal Tinke...
Who were the three new external members appointed to the RBI’s Monetary Policy Committee (MPC)?
When is the Prime Minister scheduled to release the 17th installment amount of about Rs 20,000 crore under PM-KISAN?
Who was awarded the WPL 2024 Most Valuable Player (MVP)?
What changes have been made in the rebranding of Bank of Baroda’s wholly-owned subsidiary for cards, now known as 'BOBCARD Limited'?
What initiative is being undertaken to enhance the ease of living of pensioners, according to the Secretary (P&PW)?
What was the approximate value of total UPI transactions processed in September 2024?