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 is an agreement between two parties to buy or sell an asset at a specified price and date in the future. No cash is required at the initiation of the contract. Payment is typically made at the time of delivery or settlement of the contract. Options and futures contracts require payment of premiums and margin, respectively, at the time of initiation.

Which One of the Following Contracts Requires No Cash to Change