The ________ is a derivative forward contract that was created in the 1990s. It has the same characteristics and documentation requirements as traditional forward contracts except that they are only settled in U.S. dollars and the foreign currency involved in the transaction is not delivered.
A) nondeliverable forward
B) dollar only forward
C) virtual forward
D) internet forward

Question

Quizplus · Accepted Answer

The description matches the characteristics of a nondeliverable forward, which is settled only in U.S. dollars and does not involve delivery of the foreign currency. The other answer choices do not accurately describe this type of derivative forward contract.

The ________ Is a Derivative Forward Contract That Was Created