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    Question

    In the case of a forward contract , the actual risk arises and is managed on:

    A Date of contract Correct Answer Incorrect Answer
    B Date of delivery Correct Answer Incorrect Answer
    C Date of settlement Correct Answer Incorrect Answer
    D Date of payment Correct Answer Incorrect Answer
    E A or C Correct Answer Incorrect Answer

    Solution

    Once a forward contract is entered into, the actual risk arises and is hedged through the contract on that day.

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