A forward contract is described as agreeing today to either purchase or sell an asset or security:
A)at a later date at a price to be set in the future.
B)today at the current market price.
C)at a later date at a price set today.
D)if it is advantageous to do so in the future.
E)with delivery today and payment in the future.

Question

Quizplus · Accepted Answer

A forward contract involves agreeing today to buy or sell an asset at a later date, but crucially, at a price that is set today, not in the future.

A Forward Contract Is Described as Agreeing Today to Either