The Difference Between the Spot Contract and a Forward Contract

question 156

Multiple Choice

The difference between the spot contract and a forward contract is that:

• A) the former is a flexible price on the currency, and the latter is a fixed price.
• B) the former is a contract to be settled immediately, and the latter is a contract to be settled at a future agreed-upon date.
• C) the former is a derivative, and the latter is not a derivative.
• D) the former has a fixed price but the contract can be settled at a later date, and the latter is a contract to be settled immediately.

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