The Buyer of a Forward Contract

question 48

Multiple Choice

The buyer of a forward contract:

• A) Is obligated to make delivery and accept the forward price.
• B) Has the option of taking delivery and paying the lesser of the spot market price or the contract price.
• C) Has the option of making delivery and receiving the higher of the spot market price or the contract price.
• D) Is obligated to take delivery and pays the lower of the spot market price or the contract price.
• E) Is obligated to take delivery and pay the forward price.

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Definitions:

Barbiturates

A class of drugs acting as central nervous system depressants, traditionally used for anesthesia, sedation, and as anticonvulsants.

THC

Tetrahydrocannabinol, the psychoactive compound found in cannabis that is responsible for its intoxicating effects.

Hyperthermia

A medical condition characterized by an abnormally high body temperature that exceeds the body’s capability to dissipate heat.

Water Intoxication

A potentially fatal disturbance in brain functions that results when the normal balance of electrolytes in the body is pushed outside of safe limits by excessive water intake.