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A forward contract is a financial agreement between two parties to buy or sell an asset at a predetermined price on a specified future date. It allows the buyer to lock in prices and hedge against price fluctuations, while the seller can secure future revenue. Unlike standardized futures contracts, forward contracts are customizable and traded over-the-counter, which means they carry counterparty risk. Overall, they are used to manage risk in various markets, including commodities, currencies, and financial instruments.
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What statement best explains what a futures contract is?
A futures contract is a contract setting the price and date for a commodity purchase.
Which if the following best explains what a futures contract is?
(apex) a contract setting the price and date for a commodity purchase.
Which best explains what forward contract does?
A forward contract is a customized agreement between two parties to buy or sell an asset at a predetermined price on a specified future date. It allows the parties to hedge against price fluctuations by locking in prices today, regardless of future market conditions. Unlike standardized futures contracts, forward contracts are typically traded over-the-counter, meaning they can be tailored to the specific needs of the parties involved. This provides flexibility, but also carries counterparty risk since they are not regulated exchanges.
When you choose future contract over forward contract?
When there isn't an active market for the forward contract. Generally, Futures contracts have a much more active open market than forward contracts and have alot more choice in terms of expiration months than forward contracts.
Which best explains what a futures contract does?
A futures contract is a standardized agreement between two parties to buy or sell an asset at a predetermined price on a specified future date. It allows traders to hedge against price fluctuations or speculate on future price movements of commodities, currencies, or financial instruments. By locking in prices ahead of time, it provides certainty and can help manage risk in volatile markets.
What best explains what a forward contract is?
A contract to deliver a particular commodity to a buyer sometime in the future.
What best explains the term social contract?
d
What best explains what a future's contract is?
A futures contract is a contract setting the price and date for a commodity purchase.
What statement best explains what a futures contract is?
A futures contract is a contract setting the price and date for a commodity purchase.
What Best Explains What Futures Contract Is?
(apex) a contract setting the price and date for a commodity purchase.
Which if the following best explains what a futures contract is?
(apex) a contract setting the price and date for a commodity purchase.
Which best explains the social contract?
The relationship between people and their government
Ask us of the following best explains what a forward contract is?
A forward contract is the simplest of the Derivative products. It is a mutual agreement between two parties, in which the buyer agrees to buy a quantity of an asset at a specific price from the seller at a future date. The Price of the contract does not change before delivery. These type of contracts are binding, which means both the buyer and seller must stay committed to the contract. This means they are bound to deliver or take delivery of the product on which the forward contract was agreed upon. Forwards contracts are very useful in hedging
Which best explains why writers use rhythm in poetry?
To create a sense of forward motion
What part of a contract explains the background of the contract?
Normally, the Recitals.
What event best explains why congress passed the contract labor law in 1864?
the civil war was being fought
Which of the following best explains how revenue is determined?
A contract to deliver a particular commodity to a buyer sometime in the future. Apexx J.Pichardo
