You Enter into a Forward Contract to Take Delivery of One

question 69

Multiple Choice

You enter into a forward contract to take delivery of one million Deutsche marks three months from now.What happens to the price you will pay at expiration if marks depreciate during the contract?

• A)Your price will increase
• B)Your price will decrease
• C)Your price was fixed at the onset of the contract
• D)Your price was fixed, and you will receive correspondingly more marks due to the depreciation

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Definitions:

Urologist

A specialist who diagnoses and treats diseases of the kidney, bladder, and urinary system.

Dysuria

Pain, discomfort, or burning sensation experienced during urination.

Ectopic Pregnancy

A condition where a fertilized egg implants and grows outside the main cavity of the uterus, commonly in a fallopian tube.

Implantation

The process by which a fertilized egg attaches itself to the lining of the uterus, beginning the stages of pregnancy.