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Which of the following accurately describes a characteristic of to-be-announced (TBA) trading in mortgage-backed securities (MBS)?
A
TBAs involve agreements on specific pools of mortgages at predetermined prices.
B
TBAs allow sellers to choose the exact mortgage pools to deliver at settlement.
C
TBAs are forward contracts where buyers and sellers agree on issuer, maturity, coupon, price, par value, and settlement month.
D
TBAs are less actively traded compared to specified pools due to their complex settlement process.
