A forward market allows for the exchange of commodities in the ______ at prices that are settled upon in the ______.
A) past; present
B) present; present
C) future; present
D) present; future

Question

Quizplus · Accepted Answer

A forward market involves the buying and selling of commodities on a specified future date at a price that is agreed upon in the present. Commodities are not exchanged in the past, so options A and B are incorrect. Prices are not settled upon in the past, so option A is incorrect. The prices for the commodities are agreed upon in the present, but the exchange of the commodities happens in the future, so option D is incorrect.

A Forward Market Allows for the Exchange of Commodities in the ______