Question

Futures contracts differ from forward contracts in that a. futures contracts are between the individual hedger and speculator. b. futures contracts are personalized, unique contracts; forwards are standardized. c. futures contracts are marked to market daily with changes in value added to or subtracted from the accounts of the buyer and the seller. d. forward contracts always require a margin deposit.

Answer 1

Answer:

c. futures contracts are marked to market daily with changes in value added to or subtracted from the accounts of the buyer and the seller.

Explanation:

The future cost should be different from the forward contract in the case when the future contract are considered to be marked on the daily market along the value change that are added or deducted from the buyer and seller accounts

So as per the given situation, the option c is correct