Which of the following statements is/are correct about a forward contract?
I.Forward contracts require a good faith deposit before an agreement can be reached.
II.Forward contracts are considered extremely risky since the price for the asset is determined when the contract matures.
A)Only statement I is correct
B)Only statement II is correct
C)Both statements I and II are correct
D)Neither statement I nor II is correct

Question

Quizplus · Accepted Answer

Forward contracts do not typically require a good faith deposit, and the price is determined at the time of the agreement, not at maturity.

Which of the Following Statements Is/are Correct About a Forward