A(n) _____________ contract is a legally binding agreement between two parties calling for the purchase/sale of an asset in the future at an agreed-upon price today.
A) Forward.
B) Spot.
C) Swap.
D) Option.
E) Floating.

Question

Quizplus · Accepted Answer

A forward contract is a customized contract between two parties to buy or sell an asset at a specified price on a future date. Unlike options, swaps, or spot contracts, a forward contract commits both parties to the transaction.

A(n) _____________ Contract Is a Legally Binding Agreement Between Two