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A risk manager working at an investment firm is conducting an analysis on the forward and futures contracts that the firm's clients employ for hedging activities. The scope of the analysis includes a comparison of the pricing mechanisms for both types of contracts, the methods used to compute their respective profits and losses, and the strategies employed to either offset or fulfill the contractual obligations. Which of the following statements is true?
A
When the price of an asset is positively correlated with interest rates, the forward contract wil typically have a higher price than the futures contract.
B
If interest rates are higher than the income generated by a financial asset, delivery of the asset against the futures contract will take place on the latest date possible.
C
The daily profit and loss on forward and futures contracts differ, since futures contracts realize profits and losses each day while forward contracts realize them at maturity.
D
Prices on similar forward and futures contracts will be the same due to the no arbitrage relationship between forwards and futures.