- CFA Exams
- CFA Level I Exam
- Topic 7. Derivatives
- Learning Module 45. Derivative Markets and Instruments
- Subject 3. Forward Commitments
CFA Practice Question
Which of the following statements is not true of futures contracts?
A. All futures contracts are highly standardized and trade on organized exchanges.
B. Futures contracts may be customized to meet the needs of specific parties.
C. The clearinghouse serves to guarantee performance by the parties to a futures contract.
Explanation: Customization is a characteristic of forward contracts, not futures
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