Which of the Following Is an Example of a "Forward

question 13

Multiple Choice

Which of the following is an example of a "forward"?

• A)Right to buy 100 shares of CIBC over the next 5 years.
• B)Commitment to buy 100 barrels of oil next month at $125/barrel on the Chicago Mercantile Exchange.
• C)Commitment to buy $100,000 US dollars in 120 days at US$ = 1.10 from another company.
• D)Pay interest at prime +3% in exchange for receiving interest at 5%.

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Definitions:

Craft Workers

Employees who possess specialized skills in a particular trade or craft, often requiring specific training and apprenticeships, such as carpenters, electricians, or plumbers.

Big Business

Large-scale corporate enterprises that have a significant impact on the economy and society.

Prosperity

A state of economic growth and stability, often characterized by low unemployment and high consumer confidence.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, marked by widespread unemployment, severe deflation, and financial panic.