A Forward Contract May Be Used for

question 9

Multiple Choice

A forward contract may be used for

• A) Hedging price exposure at a future date.
• B) Speculating on price.
• C) Locking-in a price for a future transaction.
• D) All of the above.

---

Definitions:

Fundamental Attribution Error

A cognitive bias that involves overestimating the effect of personality and underestimating the influence of situational factors when explaining others' actions.

Weiner

Refers to Bernard Weiner, a psychologist known for his work on attribution theory, which deals with how people interpret and attribute causes to events and behaviors.

Past Experiences

Events or situations that have occurred in an individual's life history and can influence their current behavior and decisions.

Abilities Inferences

The process of drawing conclusions about someone's capabilities based on observed performance or behavior.