A Forward Contract

question 116

Multiple Choice

A forward contract:

• A) Requires that payment in full be made when the contract is initially written.
• B) Provides the buyer with an option to buy an asset on the settlement date at the forward price.
• C) Is a binding agreement which nets out as a zero sum game.
• D) Is marked to the market daily.
• E) Allows for immediate delivery at an agreed upon price which is to be paid on the settlement date.