A forward contract on wheat:
A) Obligates the buyer to purchase a stated quantity of wheat at a specified price on a specified date.
B) Obligates the seller to pay the buyer the difference between the market price and the forward price on the settlement date.
C) Requires the buyer to mark-to-market on a daily basis.
D) Requires both the buyer and the seller to resettle on a daily basis.
E) Obligates the seller to deliver to the buyer the stated quantity of wheat on the day of the buyer's choosing up to and including the expiration day.
Correct Answer:
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