Which of the following is an example of a forward contract?*1 pointa. Buying a stock optionb. Purchasing a government bondc. Selling a currency at a future dated. Investing in a real estate property

A one-year forward contract is an agreement where: A. One side has the obligation to buy an asset for a certain price at some time during the next year. B. One side has the obligation to buy an asset for the market price in one year’s time. C. One side has the obligation to buy an asset for a certain price in one year’s time. D. One side has the right to buy an asset for a certain price in one year’s time.

An OTC forward contract is:Select one:a. a forward contract for which the payback is outside the contract periodb. a standardised agreement that is traded on an exchange.c. a customised agreement that is not traded on an exchanged. an option to call

Which of the following is TRUE:Group of answer choicesNone of the above.A short position in a forward contract gives you the right and the obligation to buy an asset at a specified price, at a specified time in the future.Only the counterparty, which is short futures, is required to deposit money in a margin account.A long forward contract is equivalent to a long position in a put option and a short position in a call option.Buying an option to sell is the same as selling an option to buy.

43.In a forward contract, what is agreed upon at the outset?  A. The delivery date  B. The underlying asset  C. The settlement amount  D. The contract price

An options contract:Question 2Select one:a.is another name for a forward contract.b.gives the right to buy or sell an underlying asset at a predetermined price by a specified time.c.may be written for debt securities but not equities.d.may be written for equities but not debt securities.