The Main Difference Between a Forward Contract and a Cash

question 18

Multiple Choice

The main difference between a forward contract and a cash transaction is:

• A)a forward contract provides an option while a cash transaction is an obligation.
• B)a forward contract is fulfilled at a later date while the cash transaction is carried out immediately.
• C)the price of a forward contract is decided at a later date while a cash transaction occurs at the current spot rate.
• D)a cash transaction can be reversed but a forward contract cannot.
• E)the forward contract can be negotiated while a cash transaction cannot.

Understand the significance of fiber-rich diets in promoting a healthy digestive system.

Identify the different stages of sleep and their characteristics.

Recognize the importance of avoiding tobacco and excessive sun exposure for good health.

Understand dietary recommendations to reduce the risk of cancer.

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Definitions:

Investment Opportunities

Refers to financial or economic projects or assets in which an individual, company, or government can invest with the expectation of receiving future profits.

Risk Free

An investment with a certain return, with no possibility of financial loss.

Utility of Wealth

The satisfaction or benefit derived by an individual from accumulating wealth.

Hurricane

A powerful tropical cyclone with heavy rain and winds exceeding 74 miles per hour, typically in the Atlantic Ocean region.