Which one of the following contracts requires no cash to change hands when initiated?
A) Listed put option
B) Short futures contract
C) Forward contract
D) Listed call option

Question

Quizplus · Accepted Answer

A forward contract requires no cash to change hands when initiated. It is an agreement between two parties to buy or sell an asset at a specific future time and price, with no up-front payment required. Listed put and call options, as well as short futures contracts, all involve an initial cash payment or margin requirement.

Which One of the Following Contracts Requires No Cash to Change