A Forward Contract

question 36

Multiple Choice

A forward contract:

• A) requires that payment be made in full when the contract is originated.
• B) provides the buyer with an option to buy an asset on the settlement date at the forward price.
• C) is a binding agreement on both the buyer and the seller and nets out as a zero sum game.
• D) is marked to the market daily at the seller's request.
• E) allows for immediate delivery at an agreed upon price which is to be paid on the settlement date.

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Definitions:

Emotion Management

The practice of controlling and managing one's feelings and emotional reactions in various situations.

Emotion Labour

Is emotion management that many people do as part of their job and for which they are paid.

Emotion Labour

The process of managing and sometimes suppressing emotions to fulfill the emotional requirements of a job or role.

Profit Making

involves activities or strategies implemented by businesses or individuals to generate financial gain or increase earnings.