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    Question

    Which of the following statement/s is/are not correct

    about derivative instruments? i. Futures are more liquid than Forwards ii. Forwards require lesser margin than Futures iii. Futures have daily settlement while for Forwards it is at the end of period iv Futures are exchange traded Forwards are traded over the counter
    A Only i Correct Answer Incorrect Answer
    B Only ii Correct Answer Incorrect Answer
    C Only iii and iv Correct Answer Incorrect Answer
    D Only i and iv Correct Answer Incorrect Answer
    E All the above are correct Correct Answer Incorrect Answer

    Solution

    Futures are traded on exchange therefore these are more liquid.

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