What is a forward transaction

Reference no: EM131304411

1. What is a forward transaction? What is a forward contract?

2. What is the spot price? What is the settlement date?

3. An opinion column in the Wall Street Journal observes: "Speculators earn a profit by absorbing risk that others don't want. Without speculators, investors would find it difficult to quickly hedge or sell their positions." In what sense do speculators earn a profit by absorbing risk? Why would the absence of speculators make it difficult for investors to quickly hedge or sell their positions?

Reference no: EM131304411

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