A ...is an agreement between a buyer and seller at time 0, when there is a contractual agreement that an asset will be exchanged for cash at some later date.
A)call option
B)put option
C)forward contract
D)swap

Question

Quizplus · Accepted Answer

A forward contract is defined as an agreement between a buyer and seller at time 0, when there is a contractual agreement that an asset will be exchanged for cash at some later date. This is different from options (A and B) and swaps (D), which give the holder the right to buy or sell an asset at a certain price, but do not necessarily require the actual exchange of the asset itself.

A Is an Agreement Between a Buyer and Seller at Time