A forward contract involves:
A) a buyer who is willing to bear all the risk of the agreement.
B) a seller who agrees to deliver a certain amount of a commodity on a specified future date.
C) a trader who will act as broker for the client on the floor of the exchange.
D) a clearing house institution that agrees to guarantee all contracts.

Question

Quizplus · Accepted Answer

A forward contract is a private agreement between a buyer and a seller to exchange a specific amount of a commodity or asset at a predetermined price on a specified future date.

A Forward Contract Involves