15 Which of the following is NOT true regarding derivative securities? Select on

Question

15 Which of the following is NOT true regarding derivative securities? Select one: a. Forward contracts have high counterpart risk. b. All of the above are correct c. Futures contracts differ from forwards in that futures are marketable and have no default risk d. If you are short position of a futures contract at expiration then you must accept delivery of the underlying deliverable. e. A forward contract is a nonstandardized agreement to buy or sell an asset in the future, with the terms of the deal set when the contract is created

Explanation / Answer

Given all options are correct except option -d

in a futures contract there will be no delivery. They are settled at expiration.

Thus, correct option is option - d

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