Asked by Raheal Pasha on May 28, 2024
Verified
Provide a suitable definition of forward contract.
Forward Contract
A forward contract is a customized financial agreement between two parties to buy or sell an asset at a specified future date for a price agreed upon today.
- Master the concepts, terms, and application areas of different derivatives including futures, options (calls and puts), swaps, and forwards, and their contribution to financial marketplaces.
Verified Answer
PM
Priya MedurMay 30, 2024
Final Answer :
A legally binding agreement between two parties calling for the sale of an asset or product in the future at a price agreed upon today.
Learning Objectives
- Master the concepts, terms, and application areas of different derivatives including futures, options (calls and puts), swaps, and forwards, and their contribution to financial marketplaces.