Commodity Forward Contracts Differ from Financial Forwards in the Following

question 1

Multiple Choice

Commodity forward contracts differ from financial forwards in the following manner:

• A) The underlying asset in a commodity forward is an asset that may be used in production and that gets consumed in the process.
• B) Commodity forwards are always more costly than financial forwards when the spot assets have the same prices.
• C) Commodity forwards have physical delivery whereas financial forwards have cash delivery.
• D) Commodity forwards do not have inconvenience yields whereas financial forwards do.

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Definitions:

Hepatojugular Reflux

An increase in jugular vein pressure observable when pressure is applied to the liver, indicative of congestive heart failure or other cardiac issues.

Cardiomyopathy

A group of diseases that affect the heart muscle itself, potentially leading to heart failure and other complications.

Heart Failure

A chronic condition where the heart is unable to pump blood effectively, leading to a buildup of fluids and reduced oxygen delivery to tissues.

Mitral Valve

a valve in the heart that lies between the left atrium and left ventricle, regulating blood flow from the atrium to the ventricle.