A forward contract's fair value at inception is typically: a) Equal to the notional amount b) none c) Equal to the premium paid d) The present value of future cash flows e) Zero
A forward contract's fair value at inception is typically: a) Equal to the notional amount b) none c) Equal to the premium paid d) The present value of future cash flows e) Zero
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 4Q
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Transcribed Image Text:A forward contract's fair value at inception is
typically:
a) Equal to the notional amount
b) none
c) Equal to the premium paid
d) The present value of future cash flows
e) Zero
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