The buyer of a forward contract:
A) Is obligated to make delivery and pay the forward price.
B) Has the option of taking delivery and paying the lesser of the spot market price or the contract price.
C) Has the option of making delivery and receiving the higher of the spot market price or the contract price.
D) Is obligated to take delivery and pays the lower of the spot market price or the contract price.
E) Is obligated to take delivery and pay the forward price.
Correct Answer:
Verified
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