The seller of a forward contract:
A) agrees to deliver a product at a later date for a price set today
B) agrees to receive a product at a later date at the price on that later date
C) agrees to receive a product at a later date for a price set today
D) agrees to deliver a product at a later date for a price set on that later date

Question

Quizplus · Accepted Answer

The seller of a forward contract agrees to deliver a product at a later date for a price set today. This means the seller is committing to selling the product in the future at the price agreed upon today, regardless of any changes in the market price of the product.

The Seller of a Forward Contract