4 Questions
What is the position of the buyer in a forward contract?
Long
What is the price that applies at delivery in a forward contract?
Forward price
What is the initial payment for a forward contract usually set as?
Zero
What is a key assumption in determining the price of forward contracts?
Arbitrage free
Test your understanding of forward contracts with this quiz. Explore concepts such as buyer and seller positions, forward pricing, and the nature of non-standardized contracts.
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