Economics · Financial Derivatives

A forward contract is defined as:

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1A standardised contract traded on organised exchanges
2A customised agreement between two parties to buy or sell an asset at a future date at a predetermined price✓
3A contract giving the right but not obligation to buy an asset
4A derivative instrument based solely on interest rate movements

Correct answer

A customised agreement between two parties to buy or sell an asset at a future date at a predetermined price

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