CFA Practice Question

CFA Practice Question

Which of the following regarding a forward contract is false?
A. The price at which the exchange occurs is set at some point after the time of the initial contracting.
B. Involves an exchange of one asset for another.
C. Actual payment and delivery of the good occur later.
Explanation: A forward contract involves an exchange of one asset for another. The price at which the exchange occurs is set at the time of [not at some point AFTER] the initial contracting and actual payment and delivery of the good occur later.

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