A Spot Contract Is for Immediate Delivery Whereas a Forward

question 43

True/False

A spot contract is for immediate delivery whereas a forward contract is for future delivery.

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Definitions:

Absolute Advantage

The ability of a country or entity to produce a good or service more efficiently than its competitors, leading to greater output with the same input of resources.

Comparative Advantage

The ability of an entity to produce a good at a lower opportunity cost than another, leading to potential trade benefits.

Loads

Charges or fees that investors pay when buying or selling mutual funds, often used to compensate sales intermediaries.

Opportunity Cost

The value of the next best alternative foregone as a result of making a decision.