One of your advisory clients indicates that he would like to sell forward contracts in soybeans. It would be wise to warn the client that he will be facing the following risks:
liquidity.
creditworthiness of the buyer.
lack of assurance that the delivery price will remain stable.
the location for the delivery may change.
A) I and IV.
B) II and III.
C) I and II.
D) III and IV.
Answer: C) I and II.