Question: Why is the initial value of a futures contract zero? a. the expected profit is zero b. none of the above c. the underlying's price
Why is the initial value of a futures contract zero?
| a. | the expected profit is zero | |
| b. | none of the above | |
| c. | the underlying's price equals the strike price | |
| d. | the basis will converge to zero | |
| e. | you do not pay anything for it |
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