Derivatives Q67

0. Ali, a CFA candidate, makes the following statements: Statement I: Price of a forward contract fluctuates due to changes in market conditions Statement II: Value of a forward contract fluctuates due to changes in market conditions Which of the following is correct?

  • Option : B
  • Explanation : Only the value of the forward contract will adjust as market conditions change. The forward price is fixed at the initiation of the contract
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