Which of the Following Observations Is True of Forwards Contracts

question 3

Multiple Choice

Which of the following observations is true of forwards contracts?

• A)Substantial margin is required to initiate a contract.
• B)Must be completed either with the underlying's future delivery or net
• C)cash settlement.
• D)Cannot be customized;for a specific amount at a specific date.
• E)Usually settled with a net cash amount prior to maturity date.

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Definitions:

Expectancy

Expectancy, in the context of motivation theories, is the belief that one's effort will lead to desired performance and is based on past experience, self-confidence, and the perceived difficulty of the goal.

Challenging

Describes tasks or situations that are demanding and testing, requiring effort and determination to overcome.

Attainable

Something that can be achieved or reached through effort, skill, or hard work.

Specific Goals

Objectives that are clearly defined, measurable, achievable, relevant, and time-bound, aimed at guiding actions and motivating individuals or teams towards achievement.