Please choose the correct ending to complete the given sentence: Food and Entertaining: [header] How to account for forward contracts [title] Recognize a forward contract. [step] This is a contract between a seller and a buyer. The seller agrees to sell a commodity in the future at a price upon which they agree today.

Ending1: The seller agrees to deliver this asset in the future, and the buyer agrees to purchase the asset in the future. No physical exchange takes place until the specified future date. Ending2: The buyer is the person purchasing the product as agreed. You can identify a forward contract by examining the buyer's familiarity with the goods, the price of the goods he or she sells, and their relationships to the seller. Ending3: [substeps] The seller then agrees to pay as much of the market value of the commodity as possible. After the buyer makes a demand you may choose to change your forward contract. Ending4: A forward contract is usually the only contract that is legally enforceable by both parties. Once a buyer knows his or her right to produce the product, the seller at the far end of the negotiation is automatically obligated to produce that product.

Answer format: ending1/ending2/ending3/ending4