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) I only
B) II only
C) Both I and II
D) Neither I nor II

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