An agreement between a buyer and a seller at time 0 where the seller of an asset agrees to deliver an asset immediately and the buyer agrees to pay for the asset immediately is the characteristic of a
A)spot contract.
B)forward contract.
C)futures contract.
D)put options contract.

Question

Quizplus · Accepted Answer

A spot contract is an agreement between a buyer and a seller where the delivery of an asset and payment for the asset occurs immediately, at the spot price. This is different from a forward contract, where delivery and payment occur at a future date, and from futures and options contracts, which are traded on exchanges and involve standardized terms and conditions.

An Agreement Between a Buyer and a Seller at Time