Which of the Following Is True About a Long Forward

question 18

Multiple Choice

Which of the following is true about a long forward contract

• A) The contract becomes more valuable as the price of the asset declines
• B) The contract becomes more valuable as the price of the asset rises
• C) The contract is worth zero if the price of the asset declines after the contract has been entered into
• D) The contract is worth zero if the price of the asset rises after the contract has been entered into

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Definitions:

Ultrasound Machine

A medical device that uses high-frequency sound waves to create images of the inside of the body, commonly used in prenatal care and diagnostics.

Chromosomes

Structures made of DNA, found in the cells of living organisms, that carry genetic information critical for growth, development, and functioning.

Dihydrotestosterone

A potent androgen hormone produced from testosterone, involved in the development of male characteristics and certain medical conditions.

Sexual Differentiation

The process by which the bodies of living organisms develop into distinct forms based on their sex, often involving differences in reproductive organs and secondary sexual characteristics.