Question
The price of a forward or futures
contract:Solution
   The price of the forward or futures contract is the price specified to be paid for the underlying asset at a future date. The value of both contracts is nil (zero) at the initiation of the contract [AA1]  [AA2]  [AA3]  . At the initiation of the forward contract, no money is exchanged, and the contract at initiation is valueless. Like forward contracts, the futures price is established so that the initial value of a futures contract is zero . The value at maturity (expiration) is the difference between the spot price and the contract price.  [AA1] Is this something like for option we pay a premium but for futures or forwards there is no such cost associated??  [AA2] The value of both contracts is zero at the initiation. Nothing changes hands added  [AA3]
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