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10. Forward contracts are contracts to buy or sell a specified amount of an asset at a specified, fixed price with delivery at a specied
10. Forward contracts are contracts to buy or sell a specified amount of an asset at a specified, fixed price with delivery at a specied future point in time. Which of the following is true about these contracts? a. The party that agrees to buy the asset is said to be in a short position. The party that agrees to sell the asset is said to be in a long position. The specied, fixed price in the contract is known as the forward rate. A forward contract requires an initial deposit of funds with the transacting broker. 9-0
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