Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
What is the position of the buyer in a forward contract?
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?
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?
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?
What is a key assumption in determining the price of forward contracts?
Signup and view all the answers
