New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Which of the following are usually trader over the

    counter:
    A Futures contracts Correct Answer Incorrect Answer
    B Option contracts Correct Answer Incorrect Answer
    C Forward contracts Correct Answer Incorrect Answer
    D ETFs Correct Answer Incorrect Answer
    E Exchange-Traded Commodities Correct Answer Incorrect Answer

    Solution

    Forward contracts are typically traded over-the-counter (OTC) rather than on exchanges. OTC contracts are privately negotiated between two parties and are not standardized like exchange-traded contracts. The terms of a forward contract, such as the underlying asset, the quantity, the price, and the delivery date, are customized to meet the needs of the parties involved.

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