Which of the Following Observations Is True of Forwards Contracts

question 30

Multiple Choice

Which of the following observations is true of forwards contracts?

• A) Substantial margin is required to initiate a contract.
• B) Must be completed either with the underlying's future delivery or net.
• C) Cash settlement.
• D) Cannot be customized; for a specific amount at a specific date.
• E) Usually settled with a net cash amount prior to maturity date.

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Definitions:

Primary Intention

A wound closure technique that involves direct edge-to-edge contact to facilitate healing, typically used for clean, uninfected wounds.

Granulation Tissue

Fresh connective tissue and tiny blood vessels that develop on a wound's surface as it heals.

Shearing Force

A stress or force that causes layers of a material to slide past each other, typically leading to deformation or damage.

Pressure Injury

Damage to the skin and underlying tissue resulting from prolonged pressure, often occurring in bedridden or immobile individuals.