n NISM Certifications
XIII NISM Series XIII
Medium

Which of the following is a 'Forward Contract'?

Practice question from NISM Series XIII for SIF - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A customized agreement between two parties to buy or sell an asset at a specified future date at a predetermined price

    Correct answer

  2. B

    A standardized contract traded on an exchange

  3. C

    A contract settled daily with margin calls

  4. D

    A market order to buy or sell immediately

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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