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:

Payroll

The process by which employers pay an employee for the work they have completed.

Employees' Needs

Refers to the various requirements, desires, or things that employees consider important or necessary in their work environment, including fair compensation, job security, and professional growth opportunities.

Initial Activities

The preliminary actions or efforts undertaken at the start of a project, program, or process.

Personnel Department

An organizational unit tasked with managing employee-related functions, such as hiring, training, and benefits administration; often called Human Resources.