单选题

Two parties agree to a forward contract on a non-dividend-paying stock at a price of $103.00. At contract expiration, the stock trades at $105.00. In a cash-settled forward contract, the:

A、 short pays the long $2.00.
B、 short pays the long $103.00.
C、 long pays the short $105.00.

【正确答案】 A

【答案解析】

A cash-settled forward permits the long and short to pay the net cash value of the position on the delivery date. The long is due to receive a stock from the short with a market value of $105.00. Through the forward contract, the long agreed to purchase the stock at $103.00. Therefore, the short must pay the net cash value of $2.00 to the long.