Answer to Question #211202 in Finance for Moha

Question

The difficulties associated with forward contracts can be eliminated by:

Select one:

a. mandating a minimum amount to be paid by the buyer.

b. developing standardized weights, definitions, and expiration dates.

c. reducing the possibility of hedging and speculation.

d. reducing the liquidity of the forwards market.

Answer 1

a)Mandating a minimum amount to be paid by the buyer.