A forward contract has which of the following characteristics?
A)has a buyer and a seller
B)trades on an organized exchange
C)has a daily settlement
D)gives the right but not the obligation to buy
E)all of the above

Question

Quizplus · Accepted Answer

Forward contracts involve a buyer and a seller who agree on a transaction at a future date, but they do not trade on an organized exchange, do not have daily settlements, and involve obligations rather than rights.

A Forward Contract Has Which of the Following Characteristics