Question: The main difference between a forward contract and a cash transaction is: A) a forward contract provides an option while a cash transaction is an

The main difference between a forward contract and a cash transaction is:

A) a forward contract provides an option while a cash transaction is an obligation.

B) a forward contract is fulfilled at a future date while the cash transaction is carried out immediately.

C) the price of a forward contract is decided at a future date while a cash transaction occurs at the current spot rate.

D) a cash transaction can be reversed but a forward contract cannot.

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