22-52 An agreement between a buyer and a seller at time 0 to exchange a prespecified asset for cash at a specified later date is the characteristic of a
A)spot contract.
B)forward contract.
C)futures contract.
D)put options contract.
E)call options contract.

Question

Quizplus · Accepted Answer

The characteristic of a forward contract is that it is an agreement between a buyer and a seller at time 0 to exchange a prespecified asset for cash at a specified future date. In contrast, a spot contract involves immediate exchange of asset and cash, while futures, put options, and call options contracts involve trading standardized contracts on an exchange with varying degrees of flexibility and risk management.

22-52 an Agreement Between a Buyer and a Seller at Time