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The value of a forward or futures contract is: A) equal to the spot price at expiration. B) specified in the contract. C) typically zero at initiation.
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The value of a forward or futures contract is: A) equal to the spot price at expiration. B) specified in the contract. C) typically zero at initiation.

User Paxal
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Answer:

C) typically zero at initiation.

Step-by-step explanation:

The reason that their value is zero at initiation is that they are formed in a way that is neither beneficial for the short of the long party therefore they have a value of 0.

User Yagnesh
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