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:

Account Numbers

Unique identifiers assigned to individual bank accounts, facilitating transaction processing and account management.

Company Preferences

Customizable settings or options within a software application that allow a company to configure the application according to its specific requirements.

Desktop View

A user interface designed for viewing on a desktop computer, often contrasting with a mobile or compact view.

Consulting Firm

A professional service organization that provides expert advice to businesses and organizations across a diverse range of industries and sectors.