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    NEW QUESTION: 4
    What is the delta of a forward contract on a non-dividend paying stock?
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    B. Less than 1 but greater than zero
    C. 0
    D. 1
    Answer: C
    Explanation:
    Explanation
    A forward contract is a derivative contract, and has a delta of 1. Therefore Choice 'd' is the correct answer.
    This is because the value of a forward contract is given by S - Ke

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      (-rt), where S is the current spot price, r the risk free rate, K the forward price, and t the time to maturity. As S changes from S to (S + S), the value changes to (S + S) - Ke

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