What Is a "Forward

question 53

Multiple Choice

What is a "forward"?

• A)A contract in which two parties agree to exchange cash flows (e.g.interest cash flows).
• B)A contract in which one party commits upfront to buy or sell commonly traded items at a defined price and maturity date.
• C)A contract in which one party commits upfront to buy or sell something at a defined price at a defined future date.
• D)A contact that gives the right,but not the obligation,to buy a share at a specified price over a specified period of time.

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Definitions:

Sampling Distribution

A distribution of probabilities for a statistic, derived from taking many samples from a designated population.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how spread out the values are from the mean.

Urban Airport

A landing and takeoff facility for aircraft, located within or near an urban area, often dealing with constrained space and requiring specific designs to minimize noise and pollution.

Normal Distribution

A bell-shaped curve that represents a distribution of values symmetrically clustered around the mean, significant in statistics and probability theory.