CFA Practice Question

There are 206 practice questions for this study session.

CFA Practice Question

When a forward contract is established, ______
A. its price is zero.
B. its value is zero.
C. neither the price nor the value is zero.
Explanation: At initiation, the price is negotiated so that the value of the contract on the initiation date is zero. Such a forward contract is referred to as at market.

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