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      Question

      Which of the following is not an advantage of

      Futures? 
      A Price discovery Correct Answer Incorrect Answer
      B Elimination of counter party risk Correct Answer Incorrect Answer
      C Customised products meeting the requirements of the customers Correct Answer Incorrect Answer
      D Transparent trading Correct Answer Incorrect Answer
      E Improved liquidity Correct Answer Incorrect Answer

      Solution

      Futures have rather standardized products, which often leads to improving liquidity in futures. This works against this product when a client needs to hedge a specific amount to a date for which there is no standard contract.

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