The value of a forward or futures contract is: A) equal to the spot price at expiration. B) specified in the contract. C) typically zero at initiation.

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asked Mar 28, 2020 35.3k views

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Yagnesh · Answer 1 · 2020-04-03T21:24:38+0000

Answer:

C) typically zero at initiation.

Step-by-step explanation:

The reason that their value is zero at initiation is that they are formed in a way that is neither beneficial for the short of the long party therefore they have a value of 0.

The value of a forward or futures contract is: A) equal to the spot price at expiration. B) specified in the contract. C) typically zero at initiation.

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