Which One of the Following Contracts Requires No Cash to Change

question 44

Multiple Choice

Which one of the following contracts requires no cash to change hands when initiated?

• A) Listed put option
• B) Short futures contract
• C) Forward contract
• D) Listed call option

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Definitions:

Output Phase

The stage in a production or operation process where the final product or service is completed and ready for consumption or distribution.

Inventory Cost

Inventory cost includes all costs associated with procuring, storing, and managing goods a business intends to sell.

Financing

The act of providing funds for business activities, making purchases or investing.

Shelf Life

The length of time for which an item remains usable, fit for consumption, or saleable.