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Jhaime Srichandr
on Nov 06, 2024

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For forward contracts, if a buyer of a contract wins by $100 then the seller incurred a $100 loss.

Forward Contracts

A financial agreement to buy or sell an asset at a specific future date for a price agreed upon today.

Buyer

An individual or entity that acquires goods or services in exchange for payment.

Seller

An entity or individual that offers goods or services in exchange for payment, playing a crucial role in any market transaction.

  • Develop an understanding of the key differences between forward contracts and futures contracts.
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Anirudh SinghNov 07, 2024
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