Assume That the Price Paid by the Buyer of a Forward

question 46

Multiple Choice

Assume that the price paid by the buyer of a forward is $82 000 and further assume that the spot price of purchasing the hedged underlying asset at delivery date is $85 000. What is the result for the forward seller?

• A) A $3000 profit.
• B) A $3000 loss.
• C) The answer depends on how the forward price develops over time.
• D) Too little information to answer the question.

---

Definitions:

Relationship Marketing

A marketing strategy focused on building long-term relationships and customer loyalty rather than short-term transactions.

Starwood Preferred Guest Program

A loyalty program offered by Starwood Hotels, providing rewards and benefits to frequent guests. (Please note: As of my last update, Marriott International has acquired Starwood Hotels, and the program may have been integrated into Marriott's loyalty program.)

Target

A defined set of buyers that a corporation directs its offerings towards.

Customer Service

A direct one-on-one interaction between a consumer and a representative of the company aimed at enhancing the customer's experience.