The seller of a forward contract:
A) is obligated to make delivery and accept the forward price.
B) has the option of making delivery and receiving the greater of the spot price or the contract price.
C) has the option of either making delivery or accepting delivery.
D) is obligated to take delivery and pays the lower of the spot market price or the contract price.
E) is obligated to take delivery and pay the forward price.

Question

Quizplus · Accepted Answer

The seller of a forward contract is obligated to make delivery of the asset at the agreed-upon forward price at the contract's expiration, not having the option to choose based on market conditions at that time.

The Seller of a Forward Contract