Final answer:
A forward contract to deliver British pounds for U.S. dollars could be described as either selling pounds forward; buying dollars forward or selling dollars forward; buying pounds forward.
Step-by-step explanation:
A forward contract to deliver British pounds for U.S. dollars could be described as either selling pounds forward; buying dollars forward or selling dollars forward; buying pounds forward.
When an investor enters into a forward contract to deliver British pounds and receive U.S. dollars, they are essentially selling pounds forward. They are committing to sell a certain amount of pounds at a predetermined exchange rate in the future.
On the other hand, they are also buying dollars forward because they will receive U.S. dollars in exchange for the pounds. The forward contract allows them to lock in the exchange rate and protect themselves from potential fluctuations in currency values.