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Which of the following best describes forward contracts? A A commitment to buy or sell the underlying asset for a specific price. B The right

Which of the following best describes forward contracts?

A commitment to buy or sell the underlying asset for a specific price.

The right but not the obligation to buy the underlying asset for a specific price.

The right but not the obligation to sell the underlying asset for a specific price.

A commitment to buy or sell the underlying asset for a price that will be determined in the future.

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