Concerning foreign exchange trading,a forward contract is characterized by
A) it issued by major commercial banks such as Bank of America
B) its contract size can be tailored to the needs of the exporter,importer,and so on
C) its date of delivery is negotiable
D) all of the above

Question

Quizplus · Accepted Answer

A forward contract is an agreement between two parties to buy or sell an asset at a pre-agreed future date and price, which is set at the time of the contract. Forward contracts are not traded on an exchange, and they can be customized to fit the specific needs of the parties involved. Therefore, the contract size can be tailored to the needs of the exporter, importer, and so on. Also, the date of delivery is negotiable. Major commercial banks may issue forward contracts, but this is not a defining characteristic of this type of contract. Therefore, all of the given options are correct.

Concerning Foreign Exchange Trading,a Forward Contract Is Characterized by