9

Which of the following best describes the difference between the price of a forward contract and its value?

a.

The forward contract value is a benchmark against which the price is compared for the purposes of determining whether a trade is advisable

b.

There is no difference at initiation

c.

The forward price is fixed at the start, and the value starts at zero and then changes

d.

The price determines the profit to the buyer, and the value determines the profit to the seller