Q637
Type of contract which involves immediate exchange of funds and assets is classified as
A.
spot contract
AnswerB.
forward contract
C.
future contracts
D.
present contract
Answer: Option A
Solution
Answer: Option A
Solution:
Type of contract which involves immediate exchange of funds and assets is classified as spot contract. A spot contract is a document that has a purchase or sale of a currency, security, or commodity for quick delivery and payment for the spot date, which is around two days after the trade date.