Derivatives【Reading 61】Sample
Which of the following statements about forward contracts is least accurate? A)
| A forward contract can be exercised at any time. |
| B)
| The long promises to purchase the asset. |
| C)
| Both parties to a forward contract have potential default risk. |
|
Forward contracts typically require a purchase/sale of the asset on the expiration/delivery date specified in the contract. The other statements are true. |