Identify the incorrect statement from the below:
1.Future contracts are tailor made contract.
2.Future contracts are subject to M2M settlements
3.There is more counterparty risk associated with forwards as opposed to futures.
4.Forward and futures contracts involve the agreement between two parties to buy and sell an asset at a specified price by a certain date.
5.Forward contracts have a better liquidity as compared to futures
6.Initial margin is required to enter a future contract.
The forward contract is a custom-made or tailor-made contract, whereas a future contract is standardized in quantity, quality, and delivery date. Futures contracts have higher liquidity compared to forward contracts. This is because futures contracts are traded on organized exchanges, which provide a centralized marketplace where buyers and sellers can easily find counterparties to trade with.
Ratio of the cost price of article ‘A’ to ‘B’ is 5:6, respectively. Article ‘A’ is marked up by 30% above its cost price and then sold at a ...
The cost price of two dozen bananas is Rs. 96. After selling 18 bananas at the rate of Rs. 36 per dozen, the shopkeeper reduced the rate to Rs. 24 per d...
One article is sold at 16% profit while other is sold at 5% loss such that the difference between their selling prices is Rs. 126. If the cost price of ...
A school bag is sold for Rs.540 after giving two successive discounts of 10% and 20%. If school bag is marked up by Rs.480 above its cost price, then fi...
A dishonest shopkeeper makes a cheating of 25% at the time of buying the goods and 37.5% cheating at the time of selling the goods. He promises to sell ...
A purchased an article and sold it to B at 25% profit. B marked it up by 20% above the price at which A has purchased it and then sold it after giving a...
A retailer set the price of a toy at 20% higher than its cost price and sold it to 'R' with a 25% discount. 'R' then spent Rs. 80 on repairs and sold th...
A loss of 10(1/2)% gets converted into a profit of 11(3/5)% when the selling price is increased by Rs132.60. The cost price (in Rs) of the article is:
X labeled an item with a 60% markup on the cost price and sold it for Rs. 480 after applying a 25% discount. Calculate the percentage profit earned by X...
If the ratio of marked price and selling price of an article is 13:10. Shopkeeper earned 25% profit. If the difference between marked price and cost pr...