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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