Which of the Following Observations Is True of Forward Contracts

question 65

Multiple Choice

Which of the following observations is true of forward contracts?

• A)A substantial margin is required to initiate a contract.
• B)They must be completed either with the underlying's future delivery or net cash settlement.
• C)They cannot be customized for a specific amount at a specific date.
• D)They are usually settled with a net cash amount prior to maturity date.

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