Question: Identify the one false statement about forward contracts: ( A ) The bank is exposed to default risk under a forward contract because of the

Identify the one false statement about forward contracts:
(A) The bank is exposed to default risk under a forward contract because of the right of offset.
(B) Forward contracts can be used for arbitrage and shopping around.
(C) Forward contracts can be used to hedge contractual exposure.
(D) Forward contracts can be used to speculate.
(E) Forward contracts can be used to minimize the impact of market imperfections.

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