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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