In a Forward Contract No Monies Change Hands Until the Maturity

question 4

Multiple Choice

In a forward contract no monies change hands until the maturity date of the contract known as the ________,

• A) spot value date
• B) exercise date
• C) forward contract date
• D) forward settlement date

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Definitions:

Merchandise Inventory

The goods and products a retail or wholesale company holds for the purpose of resale to customers.

Liability Account

A financial reporting category that encompasses all obligations or debts a company owes to outside parties.

Merchandise Inventory

The total cost of all the goods held by a company that are available for sale to customers in the retail or wholesale sector.

Periodic

Relating to, occurring, or appearing at regularly occurring intervals.