The seller of a forward contract: Question 16Answer a. is obligated to take delivery and pays the lower of the spot market price or the contract price. b. is obligated to make delivery and accept the forward price. c. B. has the option of making delivery and receiving the greater of the spot price or the contract price. has the option of making delivery and receiving the greater of the spot price or the contract price. d. has the option of either making delivery or accepting delivery.
The seller of a forward contract: Question 16Answer a. is obligated to take delivery and pays the lower of the spot market price or the contract price. b. is obligated to make delivery and accept the forward price. c. B. has the option of making delivery and receiving the greater of the spot price or the contract price. has the option of making delivery and receiving the greater of the spot price or the contract price. d. has the option of either making delivery or accepting delivery.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
The seller of a forward contract:
Question 16Answer
a.
is obligated to take delivery and pays the lower of the spot market price or the contract price.
b.
is obligated to make delivery and accept the forward price.
c.
|
B. |
has the option of making delivery and receiving the greater of the spot price or the contract price. |
has the option of making delivery and receiving the greater of the spot price or the contract price.
d.
has the option of either making delivery or accepting delivery.
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