The Seller of a Forward Contract

question 41

Multiple Choice

The seller of a forward contract:

• A) is obligated to make delivery and accept the forward price.
• B) has the option of making delivery and receiving the greater of the spot price or the contract price.
• C) has the option of either making delivery or accepting delivery.
• D) is obligated to take delivery and pays the lower of the spot market price or the contract price.
• E) is obligated to take delivery and pay the forward price.

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Definitions:

Point System Matrices

Quantitative tools used in decision making and evaluation, involving the scoring of options or performance across various criteria to guide selections or improvements.

Job Factors

Elements or conditions within a workplace that can influence an individual's job performance or satisfaction.

Point Levels

A method used in various management and HR systems to assign value or scores to jobs or tasks based on their importance or difficulty.

Team Incentive Plans

Compensation schemes designed to offer rewards to a group or team of employees for achieving specific, collectively measured performance goals.