For each pair shown below, which of the two describes a forward contract? Which describes a futures
Question:
For each pair shown below, which of the two describes a forward contract? Which describes a futures contract?
(a) Standardized/made to order
(b) Interest rate risk/no interest rate risk
(c) Ruin risk/no ruin risk even when there is a matching cash flow at T
(d) Short maturities/even shorter maturities
(e) No secondary market/liquid secondary market
(f) For hedgers/speculators
(g) More expensive/less expensive
(h) No credit risk/credit risk
(i) Organized market/no organized market
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Related Book For
International Finance Putting Theory Into Practice
ISBN: 978-0691136677
1st edition
Authors: Piet Sercu
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