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      Question

      Which of the following is NOT an example of a forward

      contract?Β 
      A An agreement to buy a house in the future at a specified price. Correct Answer Incorrect Answer
      B An agreement to buy a concert ticket at a future date for a certain price Correct Answer Incorrect Answer
      C An agreement to buy the modular kitchen set-up today at the posted price. Correct Answer Incorrect Answer
      D An agreement to subscribe to OTT network at a specified price at a future date Correct Answer Incorrect Answer
      E All are forward contracts Correct Answer Incorrect Answer

      Solution

      A forwards is a derivative contract between two parties where they agree to buy/sell the underlying asset in future at a pre-decided price.Β  Option c is a contract for present and not future.

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