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 MCQ
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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
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- A contract requiring a specified future monetary payment at a specified future point in time in exchange for the delivery of a specific asset is called a: *A. nonconvertible option.B. hedge.C. long contract.D. swap.Provide answer_____ is a contract that involves compensation for specific potential future losses in exchange for periodic payments and that provides for the transfer of the risk of a loss, from one entity to another, in exchange for a premium. a.Spot contract b.Insurance c.Hedging d. Forward contract