One of the Limitations of a Forward Contract Is That

question 47

Multiple Choice

One of the limitations of a forward contract is that:

• A) it is very difficult to frame and understand the agreement.
• B) the seller cannot be sure of the amount she will receive on settlement date.
• C) it is costly to find a willing counterparty.
• D) the prices in the forward market are highly volatile.

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Definitions:

S Data

Self-report data, a type of psychological data obtained by asking subjects to reflect on and report their own thoughts, feelings, and behaviors.

Definitional Truth

A statement or assertion that is true by virtue of its definition, meaning, or the words used in its expression, without requiring external evidence for verification.

Expectancy Effect

The influence of the researcher's or participant's expectations on the outcome of an experiment or study.

Performance-Based Personality Tests

Evaluations designed to assess personality traits through the analysis of behaviors in specific tasks or situations, rather than through self-report questionnaires.