1. Which of the following is true about a long forward contract a. The contract becomes more valuable as the price of the asset declines b. The contract becomes more valuable as the price of the asset rises c. The contract is worth zero if the price of the asset declines after the contract has been entered into d. The contract is worth zero if the price of the asset rises after the contract has been entered into

Respuesta :

The true statement about a long forward contract is that the contract becomes more valuable as the price of the asset rises.

What is a long forward contract?

This is a kind of contract that between two parties to either buy or sell an asset at a specified price on a future date.

Hence, the long forward contract has an true statement which is that its is more valuable as the price of the asset rises.

Therefore, the Option B is correct.

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