Multiple Choice
Which of the following statements is true?
A) In a forward contract the buyer and seller agree on a price at time 0 and the bonds are delivered by the seller to the buyer 'at that time'.
B) In a forward contract the buyer and seller agree on a price at time 0 and the bonds are delivered by the seller at a future point in time, for example, after three months.
C) In a forward contract the buyer and seller enter into a contract at time 0, the contract is marked to market on a daily basis, and the buyer pays the forward price quoted at expiry.
D) None of the listed options are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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