forward-contracts

Learning objectives: Distinguish between the forward price and the value of a forward contract. Calculate the value of a forward contract on a financial asset that does or does not provide income or yield. Explain the relationship between forward and futures prices. Calculate the value of a...

Learning objectives: Define and describe financial assets. Define short-selling and calculate the net profit of a short sale of a dividend-paying stock. Describe the differences between forward and futures contracts and explain the relationship between forward and spot prices. Calculate the...

Hey all, Can you please elaborate on the following line a bit more : " Future contracts and Forward contracts are priced to have zero value at the time an investor enters into the contract". It seems a bit confusing to me. As I think that this line can be very important, I would like you to help...