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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