Forward contracts ________ traded on an organized exchange, and futures contracts ________ traded on an organized exchange.

A) are; are
B) are; are not
C) are not; are
D) are not; are not

Forward Contracts

Non-standardized contracts between two parties to buy or sell an asset at a specified future time at a price agreed upon today.

Organized Exchange

A regulated marketplace for the trading of securities, commodities, derivatives, and other financial instruments.

Futures Contracts

Standardized agreements to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.