Question

The delivery of the underlying asset is seldom made in forward contracts while the delivery is usually made in futures contracts.
a. True
b. False

Answer 1

Answer:

a. True

Explanation:

In the case when there is a delivery of an asset so it would be very rare that it should be made in the forward contract as the delivery of an assets should be made in the future contract. As the forward contract settles at the time when the agreement is closed while the future contract deals with the terms and conditions related to the trading

So the given statement is true