Question

In the case of a forward contract , the actual risk arises and is managed on:

A Date of contract Correct Answer Incorrect Answer
B Date of delivery Correct Answer Incorrect Answer
C Date of settlement Correct Answer Incorrect Answer
D Date of payment Correct Answer Incorrect Answer
E A or C Correct Answer Incorrect Answer

Solution

Once a forward contract is entered into, the actual risk arises and is hedged through the contract on that day.

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