Which of the following is a customized contract between two parties to – InterviewSolution

1.	Which of the following is a customized contract between two parties to buy or sell assets on a specified price on a future date?1). Post date agreement2). New trading3). Forward contract4). Insider trading
Answer» A forward contract is a CUSTOMIZED contract between two parties to buy or sell assets on a specified price on a future date. Suppose a farmer has 10 hectares of land planted with WHEAT, he is concerned about the decline in PRODUCTION of wheat. He, THEREFORE, enters into a contract with a financial institution to sell the total productivity of 10 hectares of land at ?1,00,000 after 6 MONTHS. This agreement is termed as a Forward contract.

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