Which One of the Following Statements Concerning Forward Contracts Is

question 124

Multiple Choice

Which one of the following statements concerning forward contracts is true?

• A) Forward contracts are marked-to-the market daily.
• B) Forward contracts can NOT be resold once purchased.
• C) Both the buyer and the seller of a forward contract can profit if both parties hold the original contract for the duration of the contract.
• D) The buyer of a forward contract has the right, but not the obligation, to take delivery of the goods.
• E) The seller of a forward contract on corn profits when the price of corn falls.

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