Forward Contracts Quiz
4 Questions
2 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the position of the buyer in a forward contract?

  • Short
  • Neutral
  • Balanced
  • Long (correct)
  • What is the price that applies at delivery in a forward contract?

  • Initial price
  • Forward price (correct)
  • Spot price
  • Market price
  • What is the initial payment for a forward contract usually set as?

  • Market-dependent
  • Negotiable
  • Zero (correct)
  • Equal to the forward price
  • What is a key assumption in determining the price of forward contracts?

    <p>Arbitrage free</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Browser