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      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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