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Futures contracts differ from forward contracts in that

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6 years ago

Futures contracts differ from forward contracts in that

Futures contracts differ from forward contracts in that
A) they can be used by financial managers to reduce risk.
B) they provide their holder with an opportunity to buy or sell an asset at some future time if the asset's value has changed in a manner favorable to the futures contract holder.
C) they sustain a small change in value when there is a small change in the price of the underlying commodity.
D) they are for standardized commodities in standardized quantities and have standardized expiration dates.

Textbook

Financial Management: Principles and Applications

Edition: 13^th

Authors: Titman, Keown, Martin

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