The advantage of using a forward rate agreement FRA over a futures contract is: * A. FRAs are highly standardized. B. FRAs have only an initial margin and no ongoing maintenance margin. C. the terms and conditions of a FRA can be negotiated. D. FRAs have standardized maturities

The advantage of using a forward rate agreement FRA over a futures contract is: * A. FRAs are highly standardized. B. FRAs have only an initial margin and no ongoing maintenance margin. C. the terms and conditions of a FRA can be negotiated. D. FRAs have standardized maturities

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The advantage of using a forward rate agreement FRA over a futures contract is: *

A. FRAs are highly standardized.

B. FRAs have only an initial margin and no ongoing maintenance margin.

C. the terms and conditions of a FRA can be negotiated.

D. FRAs have standardized maturities

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