Q532
Type of contract which involves future exchange of assets at a specified price is classified as
A.
future contracts
B.
present contract
C.
spot contract
D.
forward contract
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Type of contract which involves future exchange of assets at a specified price is classified as forward contract. A forward contract is a customized contract between two parties to buy or sell an asset at a specified price on a future date.