The main difference between a forward contract and a cash transaction is:
A) only the cash transaction creates an obligation to perform.
B) a forward is performed at a later date while the cash transaction is performed immediately.
C) only one involves a deliverable instrument.
D) forwards contracts should always be in writing.
E) None of the above.
Correct Answer:
Verified
Q1: A swap is an arrangement for two
Q1: Derivatives can be used to either hedge
Q2: A farmer with wheat in the fields
Q6: You hold a forward contract to take
Q8: LIBOR stands for:
A)Lausanne Interest Basis Offered Rate.
B)London
Q9: A forward contract is described by:
A)agreeing today
Q11: The buyer of a forward contract:
A)Will be
Q17: If rates in the market fall between
Q19: Which of the following terms is not
Q20: Duration is a measure of the:
A)yield to
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