Suppose you purchase one of each of the following. In which contract does money not change hands today between you and the seller?
A) Futures contract.
B) Option contract.
C) Stock.
D) Bond.
E) Treasury bill.

Question

Quizplus · Accepted Answer

In a futures contract, money does not change hands at the time of purchase. Instead, the buyer and seller agree on a price for a future transaction. Payment and delivery of the asset occur at a specified future date, not at the time of contract initiation.

Suppose You Purchase One of Each of the Following