Answer each question to the best of your ability. About 4 or more sentences.

1. How do futures contracts facilitate trading among strangers? 2. What are the differences between futures and forward markets in terms of counterparty credit risk, contract terms, delivery expected, timing flexibility, regulation, liquidity requirements, and capital requirements? 3. Explain the theory of Normal Backwardation. Explain the expected effects on price relationships and risk premiums. 1. How do futures contracts facilitate trading among strangers? 2. What are the differences between futures and forward markets in terms of counterparty credit risk, contract terms, delivery expected, timing flexibility, regulation, liquidity requirements, and capital requirements? 3. Explain the theory of Normal Backwardation. Explain the expected effects on price relationships and risk premiums