The Buyer of a Forward Contract

question 48

Multiple Choice

The buyer of a forward contract:

• A) Is obligated to make delivery and accept the forward price.
• B) Has the option of taking delivery and paying the lesser of the spot market price or the contract price.
• C) Has the option of making delivery and receiving the higher of the spot market price or the contract price.
• D) Is obligated to take delivery and pays the lower of the spot market price or the contract price.
• E) Is obligated to take delivery and pay the forward price.

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Definitions:

Behavioral Differences

Variations in actions and reactions among individuals or groups, often studied to understand psychological, social, or species-specific traits.

Copper-colored Pigment

A pigment known for its distinctive reddish-brown hue, often found in art, cosmetics, and natural occurrences.

Melanin

A pigment found in the skin, hair, and eyes of humans and animals that determines coloration and offers protection against UV radiation.

Genetic Fingerprint

A unique pattern of DNA markers used to identify individuals or genetic relationships.