Multiple Choice
What is a "forward"?
A) A contract in which two parties agree to exchange cash flows (e.g.interest cash flows) .
B) A contract in which one party commits upfront to buy or sell commonly traded items at a defined price and maturity date.
C) A contract in which one party commits upfront to buy or sell something at a defined price at a defined future date.
D) A contact that gives the right,but not the obligation,to buy a share at a specified price over a specified period of time.
Correct Answer:
Verified
Correct Answer:
Verified
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