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A customised agreement to purchase a certain bond next Tuesday for R800 is …Select one:a.a futures contract.b.a forward commitment.c.a swap.d.an option.

Question

A customised agreement to purchase a certain bond next Tuesday for R800 is …Select one:a.a futures contract.b.a forward commitment.c.a swap.d.an option.
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Solution 1

The correct answer is b. a forward commitment.

Here's why:

A forward commitment is a customized, bilateral agreement to buy or sell an asset at a specified price on a future date. In this case, the agreement to purchase a certain bond next Tuesday for R800 fits the definition of a forward commitm Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.

Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
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