The buyer of a forward contract will be:
A)taking delivery of the goods today at today's price.
B)making delivery of the goods at a later date at that date's price.
C)making delivery of the goods today at today's price.
D)taking delivery of the goods at a later date at a pre-specified price.
E)deciding on a future date whether or not to take delivery at a pre-specified price.

Question

Quizplus · Accepted Answer

The buyer of a forward contract is locking in a price to purchase a specific commodity or asset at a later date. Therefore, the buyer will be taking delivery of the goods at a later date at a pre-specified price.

The Buyer of a Forward Contract Will Be