- CFA Exams
- CFA Level I Exam
- Topic 7. Derivatives
- Learning Module 5. Pricing and Valuation of Forward Contracts and for an Underlying with Varying Maturities
- Subject 1. The Concept of Pricing vs. Valuation
CFA Practice Question
Which derivatives do NOT start off with values of zero?
II. Futures
III. Swaps
IV. Options
I. Forwards
II. Futures
III. Swaps
IV. Options
Correct Answer: IV
An option has a non-zero value at initiation date.
User Contributed Comments 2
| User | Comment |
|---|---|
| khalifa92 | option premium |
| Drangel01 | Thank you |