For a forex forward transaction, the settlement date is: Date agreed between the two parties.

• A. The date of trade execution
• B. The next business day after the trade
• C. A fixed calendar date set by the market
• D. The date agreed between the two parties

Answer: (D)

In a forex forward, the settlement (maturity) date is the date fixed by the contract itself—the date on which the currencies will be exchanged and the forward is settled. This date is negotiated and agreed by both parties at the time the contract is created, so it isn’t tied to the trade date or to a standard market-wide calendar.

That’s why the correct choice is the date agreed between the two parties. The other options don’t fit: the trade date is when the agreement is signed, not when delivery occurs; the next business day is a standard spot-timing convention not applicable to forwards (which can settle many days later); and a fixed calendar date set by the market would imply a standard instrument, whereas forwards are customized to each contract.