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    Question

    Which of the following contracts are not traded on

    exchanges?
    A Futures contract Correct Answer Incorrect Answer
    B Forwards contract Correct Answer Incorrect Answer
    C Options contract Correct Answer Incorrect Answer
    D Commodities contract Correct Answer Incorrect Answer
    E All are exchange traded. Correct Answer Incorrect Answer

    Solution

    The forward contract is a privately negotiated agreement between a buyer and a seller to trade an asset at a future date at a specified price. As such, they don't trade on an exchange.

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