A Forward Contract

question 36

Multiple Choice

A forward contract:

• A) requires that payment be made in full when the contract is originated.
• B) provides the buyer with an option to buy an asset on the settlement date at the forward price.
• C) is a binding agreement on both the buyer and the seller and nets out as a zero sum game.
• D) is marked to the market daily at the seller's request.
• E) allows for immediate delivery at an agreed upon price which is to be paid on the settlement date.

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Definitions:

Universal

Something that is applicable everywhere or in all cases, often used to describe concepts, principles, or conditions that are globally recognized.

Anthropologists

Scientists who study human behavior, culture, and societies, both past and present, through various perspectives and methods.

Superstructure

A society's shared sense of identity and worldview. The collective body of ideas, beliefs, and values by which a group of people makes sense of the world- its shape, challenges, and opportunities- and understands their place in it. This includes religion and national ideology.

Worldview

The collective body of ideas that members of a culture generally share concerning the ultimate shape and substance of their reality.