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.