nerdexam
SOFE

AFE · Question #60

A private agreement to buy or sell a given quantity of an asset such as a currency, interest rate or commodity at a specified future date at a specified price is called:

The correct answer is D. Forward Contract. See the full explanation below for the reasoning.

Question

A private agreement to buy or sell a given quantity of an asset such as a currency, interest rate or commodity at a specified future date at a specified price is called:

Options

  • AForward investment plan
  • BFuture agreement plan
  • CFuture Contract
  • DForward Contract

How the community answered

(36 responses)
  • A
    3% (1)
  • B
    6% (2)
  • C
    11% (4)
  • D
    81% (29)

Community Discussion

No community discussion yet for this question.

Full AFE Practice