Multiple Choice
Which of the following is a property of a forward contract?
A) In a forward contract cash is traded for immediate delivery.
B) The buyer of a forward contract is "short" while the seller of the contract is "long".
C) In a forward contract, the seller must own the commodity which is being traded.
D) The value of future delivery depends on the market price of the commodity.
Correct Answer:
Verified
Correct Answer:
Verified
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