The Holder of a Long Forward Contract Has

question 15

Multiple Choice

The holder of a long forward contract has:

• A) the option to buy the underlying asset at a fixed price on a fixed future date
• B) the option to sell the underlying asset at a fixed price on a fixed future date
• C) the obligation to buy the underlying asset at a fixed price on a fixed future date
• D) the obligation to sell the underlying asset at a fixed price on a fixed future date
• E) None of these answers are correct.

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Definitions:

William James

An American philosopher and psychologist, often referred to as the father of American psychology, known for his work in pragmatism and functional psychology.

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Twentieth Century

The period from January 1, 1901, to December 31, 2000, marked by significant global changes in culture, technology, and politics.

Empirically Oriented

An approach that relies on observation, experimentation, and evidence rather than theory or pure logic.