Which of the Following Is True About a Long Forward

Multiple Choice

Which of the following is true about a long forward contract

A) The contract becomes more valuable as the price of the asset declines
B) The contract becomes more valuable as the price of the asset rises
C) The contract is worth zero if the price of the asset declines after the contract has been entered into
D) The contract is worth zero if the price of the asset rises after the contract has been entered into