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Which of the Following Observations Is True of Forward Contracts

Question 65

Multiple Choice

Which of the following observations is true of forward contracts?


A) A substantial margin is required to initiate a contract.
B) They must be completed either with the underlying's future delivery or net cash settlement.
C) They cannot be customized for a specific amount at a specific date.
D) They are usually settled with a net cash amount prior to maturity date.

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