Author Question: Why is a forward contract also known as a derivative asset?[br][br][b][color=#165FFA]Question ... (Read 95 times)

pane00 · **on:** Jun 30, 2018

Why is a forward contract also known as a derivative asset?

Question 2

A monopolist faces the market demand curve.
a. True
b. False
Indicate whether the statement is true or false

tennis14576 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

The value of future delivery in a forward contract depends on the market price of the commodity. Hence, it is considered to be a derivative asset.

Answer to Question 2

True