Question
Identify the incorrect statement from the below: 1.Future contracts are tailor made contract. 2.Future contracts are subject to M2M settlements 3.There is more counterparty risk associated with forwards as opposed to futures. 4.Forward and futures contracts involve the agreement between two parties to buy and sell an asset at a specified price by a certain date. 5.Forward contracts have a better liquidity as compared to futures 6.Initial margin is required to enter a future contract.
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