A forward contract's fair value at inception is typically (a) Equal to the notional amount (b) Zero (c) Equal to the premium paid (d) The present value of future cash flows (e) none
A forward contract's fair value at inception is typically (a) Equal to the notional amount (b) Zero (c) Equal to the premium paid (d) The present value of future cash flows (e) none
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) Zero
(c) Equal to the premium paid
(d) The present value of future cash flows
(e) none
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