GIGAMIND

Folder:
115 CFA
File:
115.080.02.02 - Reading 49 - 2. The Concept of Pricing vs. Valuation

2. The Concept of Pricing vs. Valuation

b. distinguish between value and price of forward and futures contracts;

What is the value of a forward, futures, or swap contract at initiation date?
The value of a forward, futures and swap contract is zero at initiation date. Its price is the fixed contract price. Both price and value are relevant in determining the profit for both parties.


Source:
  • CFA