The Main Difference Between a Forward Contract and a Cash

question 64

Multiple Choice

The main difference between a forward contract and a cash transaction is:

• A)only the cash transaction creates an obligation to perform.
• B)a forward is performed at a later date while the cash transaction is performed immediately.
• C)only one involves a deliverable instrument.
• D)forwards contracts should always be in writing.
• E)None of the above.

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