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Which of the Following Statements About Forwards Is False

Question 3

Multiple Choice

Which of the following statements about forwards is false?


A) No payment is typically made at inception of a forward contract.
B) A forward contract may be settled in cash at maturity.
C) A futures contract is like a forward contract that is exchange-traded.
D) The payoff at maturity from a long forward contract is always non-negative (either positive or zero) .

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