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Question 8 4 p Which of the following statements is true? Select the correct answer from the options below Aforward contract is one in which one party agrees to buy 'something and another party agrees to sell that same'something' at a designated future date Aforward contract is one in which one party decides the price of a particular item immediately.and the price remains unchanged Aforward contract is one in which one party agrees to buy a product in exchange for another physical product of equivalent value A forward contract is one in which payments are made in US dollars only

Question

Question 8	4 p
Which of the following statements is true?
Select the correct answer from the options below
Aforward contract is one in which one party agrees to buy 'something and another party agrees to sell that
same'something' at a designated future date
Aforward contract is one in which one party decides the price of a particular item immediately.and the price
remains unchanged
Aforward contract is one in which one party agrees to buy a product in exchange for another physical product
of equivalent value
A forward contract is one in which payments are made in US dollars only

Question 8 4 p Which of the following statements is true? Select the correct answer from the options below Aforward contract is one in which one party agrees to buy 'something and another party agrees to sell that same'something' at a designated future date Aforward contract is one in which one party decides the price of a particular item immediately.and the price remains unchanged Aforward contract is one in which one party agrees to buy a product in exchange for another physical product of equivalent value A forward contract is one in which payments are made in US dollars only

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SerenProfessional · Tutor for 6 years

Answer

There for Seeing assumption based on definitions, the option: "A forward contract is one in which one party agrees to buy 'something', and another party agrees to sell that same 'something' at a designated future date." is the accurate one here to describe what a forward contract means. Thus the final choice: A.

Explain

## Step 1: Identify the definition of a forward contract <br />The first step is identifying the demands made by the question and understand the possible options. Here, the options are explaining concepts that are related to forward contracts. To answer the question, one needs a clear understanding of what a forward contract is. A forward contract is an agreement between two parties to buy or sell an asset at a predetermined price on a specified future date. <br /><br />## Step 2: Match the definition to the options available <br />Now we must fit the identified fact into the provided options. This is usually a simple decisive step provided the understanding and definitions are accurate and correct.
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