The Buyer of a Forward Contract

question 36

Multiple Choice

The buyer of a forward contract:

• A)will be taking delivery of the good(s) today at today's price.
• B)will be making delivery of the good(s) at a later date at that date's price.
• C)will be making delivery of the good(s) today at today's price.
• D)will be taking delivery of the good(s) at a later date at pre-specified price.
• E)Both A or D.

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Definitions:

Psychosis

State involving a loss of contact with reality as well as an inability to differentiate between reality and one’s subjective state.

American Law Institute (ALI) Rule

A legal standard for insanity that assesses whether a defendant lacked the capacity to understand the wrongfulness of their actions or conform their conduct to the law due to mental illness.

M'Naghten Rule

A legal principle that excuses a defendant from liability if at the time of the crime, they were suffering from a mental illness that prevented them from understanding the nature of their actions or knowing right from wrong.

Durham Rule

A legal standard used to determine insanity, stating that an accused is not criminally responsible if the unlawful act was the product of mental disease or defect.