A Forward Contract with the Feature That Gains and Losses

question 256

Multiple Choice

A forward contract with the feature that gains and losses are realized on a daily basis, rather than at the settlement date, is called a(n) ________________ contract.

• A) Floating.
• B) Spot.
• C) Option.
• D) Swap.
• E) Futures.

---

Definitions:

Boston Red Sox

An American professional baseball team based in Boston, Massachusetts, known for competing in Major League Baseball as a member club of the American League East division.

Catcher's Signs

Are signals given by a catcher to a pitcher in baseball, indicating what type of pitch to throw and its location.

Proliferation

The rapid increase or spread of something, often used in the context of weapons, technology, or diseases.

Ballparks

Stadiums or fields where baseball games are played, often referred to more generally as venues for sporting or large-scale events.