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A. What is a forward contract ? B. What are the payoff profiles for a long and short position in a forward contract? C. Is

  1. A. What is a forward contract? B. What are the payoff profiles for a long and short position in a forward contract? C. Is the sum of the long & short position to a forward contract a "zero sum game"? Why or why not? D. How could a forward contract be used to reduce risk?

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