Which of the Following Statements About Forwards Is False

question 13

Multiple Choice

Which of the following statements about forwards is false?

• A) No payment is typically made at inception of a forward contract.
• B) A forward contract may be settled in cash at maturity.
• C) A futures contract is like a forward contract that is exchange-traded.
• D) The payoff at maturity from a long forward contract is always non-negative (either positive or zero).

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Definitions:

Budget

An estimate of income and expenditure for a set period of time, often used as a plan for managing financial resources.

Scrutinized Aspect

A detail or part of something that is examined closely or subjected to thorough analysis.

Funding Proposals

Written documents submitted to potential funders or investors outlining a project or venture's objectives, methodology, and budgetary requirements.

Budgeting Guidelines

Recommended practices or principles for managing finances, often outlining how to allocate resources effectively across different areas of spending.