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:

Personality

A combination of emotional, attitudinal, and behavioral response patterns of an individual.

Diagnose

The process of identifying a disease, condition, or psychological state by examining symptoms and applying specific criteria.

Compatible

A state in which two or more things are able to exist or work together in combination without problems or conflict.

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A digital platform or structure made up of individuals or organizations that are interconnected through various forms of relationships such as friendship, kinship, common interests, or beliefs.