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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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