English is not my mother tongue. So i am a bit confused with some terms that are used in questions.
For example, i had to compute the value of a Forward Rate Agreement which turned out to be positive +$1,000 for a company. It had a long position on this Fra.
Then, the question was:
The company:
A) Owes $1,000 B) Due $1,000 C) Due $5,000
So I thought A) was the correct answer, (it owed +$1,000), but the correct answer was B) “the company was due +$1,000”.
Owe= we have to pay some money Due= someone must pay some money to me
As an adjective, due means “payable as a debt.” For example, “The mortgage payment is due tomorrow.” An expression that has been in the language since Chaucer’s day is “in due time” in the sense of “when sufficient time has passed”: “In due time everyone will know what happened.”
Owe, in the sense of “possess” or “own” comes from a Germanic source. In some English dialects the word retains the meaning of ownership, but in standard English, the meaning has gone from the sense of “to possess” to that of “to be obliged to pay”; “Don’t forget the twenty dollars you owe me.”
Owe= we have to pay some money Due= someone must pay some money to me
In the context of this question, that appears to be the case. However, the way it is written is grammatically incorrect and is confusing. “The company owes $1000” is correct. “The company due $1000” is not a correct sentence and anyone would be confused, not just you.
