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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