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A forward contract has a price that: a)is not paid at inception, but changes over time. b)changes over the term of the contract. c)is paid

A forward contract has a price that:

  • a)is not paid at inception, but changes over time.
  • b)changes over the term of the contract.
  • c)is paid at maturity.
  • d)is paid at the inception of the contract.

At expiration, the value of the forward contract is:

  • a)negative to holder of long position when forward price is lower than the spot price.
  • b)negative to holder of short position when spot price is lower than forward price.
  • c)positive to holder of long position when forward price is lower than the spot price.
  • d)positive to holder of short position when forward price is lower than the spot price.

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