Answer: The buyer of a forward contract agrees to purchase the underlying asset at a predetermined price on a specified future date.

**Explanation:** - **Option A** is incorrect because this characteristic describes a futures contract, not a forward contract. Futures contracts are standardized and traded on exchanges, whereas forward contracts are privately negotiated over-the-counter (OTC) agreements. - **Option B** is incorrect because futures contracts are actually more transparent than forward contracts. Futures markets operate on exchanges with publicly available pricing and trading data, while forward contracts are less transparent due to their OTC nature. - **Option C** is correct because it accurately describes the fundamental structure of a forward contract. In a forward contract, two parties agree that the buyer will purchase an underlying asset from the seller at a fixed price on a future date, as agreed upon when the contract is initiated.

Author: LeetQuiz Editorial Team