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Which of the Following Statements Is True of Forward Contracts

Question 1

Multiple Choice

Which of the following statements is true of forward contracts?


A) A forward contract has three parties: buyer,seller,exchange.
B) There is no default risk in a forward contract.
C) A forward contract is customizable and traded over-the-counter.
D) A forward contract may be unilaterally revoked by the parties to the contract.

Correct Answer:

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