B Berhad enters into a forward contract to purchase 1 million ordinary shares in O Corporation in one year. The current market price of O Corporation is $50 per share; the 1-year forward price of O Corporation is $55 per share. B Berhad is required to prepay the forward contract at inception with a $50 million payment. It implies that B Berhad enters into a forward contract to purchase ordinary shares of O Corporation in one year at the forward price and prepays at inception based on the current price of the shares. Required: Explain whether the forward contract of B Berhad is a derivative. (4 marks)URGENT B Berhad enters into a forward contract to purchase 1 million ordinary shares in O Corporation in one year. The current market price of O Corporation is $50 per share; the 1-year forward price of O Corporation is $55 per share. B Berhad is required to prepay the forward contract at inception with a $50 million payment. It implies that B Berhad enters into a forward contract to purchase ordinary shares of O Corporation in one year at the forward price and prepays at inception based on the current price of the shares. Required: Explain whether the forward contract of B Berhad is a derivative. (4 marks)URGENT