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      Question

      Forward contracts are traded on which type of

      exchanges:
      A Registered Stock Exchange Correct Answer Incorrect Answer
      B Over the counter exchange Correct Answer Incorrect Answer
      C Both a and b Correct Answer Incorrect Answer
      D Neither a nor b Correct Answer Incorrect Answer
      E Forward contracts are entered with banks Correct Answer Incorrect Answer

      Solution

      Forward contracts are not standardized contracts like futures. They are traded on over-the-counter exchanges and can be customized according to the needs of both parties.

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