At Maturity of the Forward Contract,the Following Is True of the Spot

question 19

Multiple Choice

At maturity of the forward contract,the following is true of the spot price and delivery price locked-in using the forward contract:

• A)The spot price is greater than the delivery price.
• B)The spot price is less than the delivery price.
• C)The spot price is equal to the delivery price.
• D)The spot price can be greater,equal to,or less than the delivery price.

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Definitions:

Vibrational Modes

The different ways in which the atoms in a molecule can move relative to each other, important in the study of molecular IR spectroscopy.

Atoms

The smallest units of matter that retain the properties of an element, comprising protons, neutrons, and electrons.

Stretching Vibration

A vibrational movement in molecules where atoms move along the line of the bond, changing the bond length.

IR Spectroscopy

Infrared (IR) spectroscopy is an analytical technique used to identify and study chemicals through the absorption of infrared radiation, which causes molecular vibrations.