The least likely reason to chose a forward vs a future

CFA Level II
#1
  1. greater flexibility instead of futures contracts
  2. less scrutiny by regulators
  3. flexibiliy on contracts length and level of notional principal.

I got this questions wrong!!! and I think the answer doesn’t make sense!

#2

The answer: "_ the customizable nature of forwards makes them less equipped for offsetting transaction. _

this is utter crap!!! i 100% disagree!

… futures on the other hand are standardized and creating an offsetting transaction is simple because the clearing house is making a market.

*** I don’t agree…if you want to replicate a swap…is way harder with futures than with forwards***

#3

Its easier to close out a future than a forward… also the other 2 answers are incorrect so you can just eliminate those.

#4

its SUPER EASY FOR US TO OFFSET OUR EXPOSURE TO CURRENCY AT WORK,…VIA FORWARD.

WE DON’T EVEN TOUCH FUTURES!!! THEY ARE WORTHLESS FOR US!

#5

I see what they are (trying) to say, but definitely a bad question in my opinion.