New Workshop on Career at EPFO by Ex-DY Director EPFO. Click Here!
Register

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.

Download PDF Practice Next
×
×