In a forward contract no monies change hands until the maturity date of the contract known as the ________,

Question

Quizplus · Accepted Answer

In a forward contract, no monies change hands until the maturity date, which is also known as the forward settlement date. The spot value date is the date the trade is settled in the current market, and the exercise date is relevant for options contracts, not forward contracts. The forward contract date is the date the forward contract is entered into, which is not necessarily the same as the maturity or settlement date.

In a Forward Contract No Monies Change Hands Until the Maturity