An important reason for trading a futures contract rather than an FRA is:

Question

Options

• AThe expense of settling an FRA
• BThe reduced counterparty risk on a futures exchange
• CThe reduced basis risk on futures
• DThe superior interest rate risk on FRAs

• A
  3% (1)
• B
  80% (32)
• C
  5% (2)
• D
  13% (5)

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