Wednesday, 23 September 2015

Cima F2 Exam Question No 31

Question No 31:

What is Futures contracts?\

Futures contracts oblige the holder to buy or sell a standard quantity of a specific underlying item at a specified future date. Futures contracts are very similar to forward contracts. The difference is that futures contracts have standard terms and are traded on a financial exchange, whereas forward contracts are tailor made and are not traded on a financial exchange.

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