Why do Options on Futures -LRB- premium paid upfront -RRB- have negative rho and Options on Futures -LRB- margined premium -RRB- have zero rho ?
Why is it charged to pay a upfront price when buying a futures -LRB- eg a dollar rupee farward -RRB- ? I understand that we dont hve to pay upfrnt for entering into a futures contract ... so why do we need to pay the ask price at futures exchange ... buying an options require upfront payment . .