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【FRM每日一题】一级:金融市场与产品

【FRM每日一题】一级:金融市场与产品

备考FRM一级  |  2015-08-11



Considering a company that uses derivatives to hedge foreign exchange risk, which of the choices below is the main advantage of futures contracts over forward contracts ?

A.Futures are less standardized

B.Futures usually have smaller notional amounts.

C.Futures have less credit risk due to “marking-to-market”.

D.Futures are typically available for longer maturities.

Answer: C

The mark-to-market feature of a futures contract requires each side to settle up every day, which reduces the credit risk of the transaction.

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