The Buyer of a Forward Contract

question 33

Multiple Choice

The buyer of a forward contract:

• A) will be taking delivery of the good(s) today at today's price.
• B) will be making delivery of the good(s) at a later date at that date's price.
• C) will be making delivery of the good(s) today at today's price.
• D) will be taking delivery of the good(s) at a later date at pre-specified price.
• E) Both will be taking delivery of the good(s) today at today's price or will be taking delivery of the good(s) at a later date at pre-specified pricE.

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Definitions:

Banker's Acceptance

A short-term financial instrument issued by a company but guaranteed by a bank as accepted for payment at a future date, often used in international trade.

Electronic Funds Transfers

The electronic transfer of money from one bank account to another, either within a single financial institution or across multiple institutions, via computer-based systems.

POS

Point Of Sale; a system used at retail locations to manage sales, inventory, and customer transactions.

Identification Card

A personal document issued by a competent authority that serves to identify the person named on it, typically including personal data and often a photo.