Which of the following is a customized agreement between two parties who are known to each other to trade an asset on some future date,at a price that is fixed today?
A)margin
B)futures contract
C)forward contract
D)interest rate swap
E)option hedging

Question

Quizplus · Accepted Answer

A forward contract is a customized agreement between two parties who are known to each other to trade an asset on some future date, at a price that is fixed today. Unlike futures contracts, which are standardized and traded on organized exchanges, forward contracts are privately negotiated and can be tailored to the specific needs of the parties involved.

Which of the Following Is a Customized Agreement Between Two