Which of the Following Is an Example of a "Forward

question 33

Multiple Choice

Which of the following is an example of a "forward"?

• A)Right to buy 100 shares of CIBC over the next 5 years.
• B)Commitment to buy 100 barrels of oil next month at $125/barrel.
• C)Commitment to buy $100,000 US dollars in 120 days at US$=1.10.
• D)Pay interest at prime +3% in exchange for receiving interest at 5%.

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Definitions:

Statute Of Frauds

A legal principle that requires certain types of contracts to be in writing to be legally enforceable.

Signature

The act of signing one's name or a unique mark made by an individual on a document as a proof of identity and intent.

Document

constitutes any written, typed, or digital material that provides information or evidence or serves as an official record.

Selling Price

The amount of money for which a product or service is sold to the buyer.