Type of contract which involves immediate exchange of funds and assets is classified as

A. spot contract

B. forward contract

C. future contracts

D. present contract

Answer: Option A

Solution(By Examveda Team)

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.